Bitcoin (BTC) miners have capitulated for almost two months, but the end of the restriction could already be in the air.
That was the conclusion of the cryptocurrency mining and Blockchain infrastructure company, Blockware, as it published its latest Intelligence Bulletin on July 29.
The most recent edition of the market research series highlighted changes in the mining ecosystem that could change a trend that has been in place since early June.
Report: Capitulation “Expected” to Be Done in September
The miners, judging by the hash tape metric, have been withdrawing for an “extended period of time,” Blockware says, and since August 1, the hash tapes have been withdrawn. sign capitulation for 55 days.
“The current mining capitulation began on June 7, 2022, and has lasted a significant amount of time. It is important to note that miner capitulations are particularly relevant because they reveal that a large number of machines are no longer generating hashes,” the firm wrote.
It also added that, “Since June 7, public and private mining companies are likely to have connected other new-generation mining rigs. However, enough previous generation machines or inefficient overleveraged miners have been shut down, that hash rate and difficulty have actually decreased in size.”
The reflection reflects the profitability headwinds generated by the drop in the price of Bitcoin, which hit $17,600 in June, sending the market back to 2020 fines.
As signs emerge, albeit disputed, that price strength is returning, the chances for better conditions for miners are also rising. According to Blockware, the capitulation, as defined by the hash tapes, should end before the summer.
“If there are no new lows in Bitcoin, we should expect miner capitulation to end in August or September at the latest,” the bulletin added.
Difficulty Due to Breakout of Multi-Month Downtrend
When it comes to miners returning to form, the first signs are already visible on-chain, thanks to automated adjustments to the fundamentals of the Bitcoin network.
Specifically, mining difficulty owes its first increase in two months on August 4 after three consecutive downward adjustments.
“It is currently projected to be positive and there is a high probability that it will persist,” Blockware summarized.
The increase, if current spot price levels also persist, will be modest at around 0.5%. For comparison, the previous decrease in difficulty totaled -5%.
By Audy Castaneda
