- After the bitcoin mining rewards were cut following the highly anticipated halving, Bitcoin miners have been on a wild ride.
- As a result, many of the users who were using older model mining machines before, shut them down as they were only registering small profits.
After the bitcoin mining rewards were cut in half on the 11th of May following the highly anticipated halving, Bitcoin miners have been on a wild ride and as a result, many of the users who are using older model mining machines before shut them down as they were only registering small profits. Following on from this, a substantial drop in the hash rate came as a result.
Earlier this week, the price of bitcoin was just below the $9000 mark and with this in mind, fears of a further dive in the price have sparked up again. A self could be on the table which might turn new investors away from entering the industry. Despite this, a digital asset manager at Capriole, Charles Edwards has seen the miner capitulation is the perfect time to buy in at bitcoin before the next bull market.
Edwards had highlighted that the third halving event would be a pretty brutal event for miners on the network. The weekly hash rate has since dropped by 26%. But looking at how everything is standing right now, the minor capitulation could be a Silver Lining for the industry. Edwards had highlighted that the rallies which ensued the capitulation were near enough vertical.
You can see his tweet below:
This capitulation is almost identical to the 2012 and 2016 halving capitulations (all within 21 days of the halving).— Charles Edwards (@caprioleio) May 25, 2020
This is a massive bull flag.
The biggest drop ever since these occurrences:
The rallies from the Hash Ribbon Buy were almost vertical.
Furthermore to add on top of this, Edwards observed that the hash ribbon by signal could be confirmed in less than a month. As a result of this, it could be the last chance to accumulate bitcoin before the asset potentially rises in its value.