‘No Capitulation’ — Bitcoin Miners Completely Unfazed by Price Drop
William Suberg's original article for cointelegraph.com reduced by 72%
Bitcoin is not seeing capitulation among miners despite its price dipping over 15% in the past week, new data suggests. Previously, Cointelegraph reported on the rising consensus that Bitcoin miners were exiting their positions as losses mounted. Taking an opposing position based on the fresh data, entrepreneur Alistair Milne suggested miners were in fact little concerned with current price action.
The difficulty is a measure of the effort required to solve Bitcoin block equations and regularly adjusts to suit current miner sentiment. Earlier this month, difficulty saw its biggest drop of the year, falling 7%. Since then, a roughly 2% uptick likewise contradicts the idea that miners are staying away, according to Blockchain figures.
For analyst PlanB, creator of the highly-popular Stock-to-Flow Bitcoin price model, difficulty trends also point to continued faith in mining profitability. "+2% difficulty adjustment: no miner capitulation," he wrote on Friday, adding the historical precedent called for a price rise after such behavior.
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CN [too long; didn’t read]
Summarised crypto news.