Originally published on: August 19, 2024
The latest data from CryptoQuant reveals that the Hash Ribbons indicator is signaling the potential end of miner capitulation in the Bitcoin market. This indicator uses a combination of 30-day and 60-day moving averages to assess the challenges faced by miners.
When the 30-day moving average crosses over the 60-day moving average, it indicates that miners are transitioning to more efficient mining equipment and re-entering the market. This shift often marks price bottoms for Bitcoin, presenting investors with an opportunity to enter the market at a favorable price point.
In a recent development, Bitcoin mining difficulty hit a new all-time high of 90.66 trillion on Aug. 1 before slightly decreasing to 86.8 trillion. This heightened difficulty has squeezed miner profit margins, with the hashprice dropping to record lows of under $36 PH/s. Although there has been a modest rebound to around $40 PH/s, this level is still close to historic lows.
As miners face pressure from increasing computational power and reduced block rewards post-halving, many are diversifying their operations into artificial intelligence and high-powered computing services. Companies like TeraWulf are leading the way by investing in AI data centers to sustain their profitability in the evolving mining landscape.
Stay ahead of the latest trends in blockchain and cryptocurrency by subscribing to our Crypto Biz newsletter. Get weekly insights on industry developments, market analyses, and emerging opportunities delivered straight to your inbox every Thursday. Join us as we navigate the exciting world of crypto together!