Bitcoin miners witnessed some respite as Glassnode confirmed miners’ balance touched a 4-year high. First and foremost, BTC market recovery might have supported the same. Nevertheless, can August ensure relief considering the previous relationship between cryptocurrency and miners?
Fixing the Past
Miner capitulation is the primary indicator to reveal the relationship’s status. Miner capitulations appear when a substantial percentage of miners shut their operations for an extended time. Blockware, a crypto mining company, revealed its recent Intelligence Newsletter on July 29, confirming the same.
The hash ribbon index shows the ongoing miner capitulation event started on June 7. Meanwhile, it lasted a considerable period. Blockware trusts capitulation, as detected by hash ribbons, should end whenever the market recoups.
The BTC Hash Ribbon indicator attempts to showcase phases when Bitcoin miners appear in pain and could capitulate. Hash ribbons take BTC hash rate’s 30- and 60-day MA. That determines when considerable miner capitulation has happened.
The firm indicated that new generation mining machines have declined in private and public mining companies since June 7. It added that several old generation rigs shut off, translating to decreased difficulty and hash rate.
Meanwhile, the crypto market presented recoveries after BTC climbed to the $23K mark. Moreover, the platform might witness some respite as the Newsletter confirmed miner capitulation could end in August or Sep as long as Bitcoin refrains from new lows.
Besides, mining difficulty awaits its initial surge in two months come August 4, following three consecutive downside adjustments primarily since the network is more than halfway through the difficult era. The blog confirmed the difficulty is currently positive and boasts a higher potential of persisting.
Moreover, data from CryptoQuant, a blockchain analytic firm, showed a decrease in BTC block reward accumulation, indicating a potential end to the ongoing downward trend in the crypto space. Block rewards are incentives cryptocurrency miners receive after successfully mining a crypto block.
The graph by CryptoQuant confirmed clients accumulating the token, and a bullish run might be imminent. Also, CryptoQuant CEO Ki Young Ju supported the accumulation narrative.