Don’t Long Bitcoin Now Says Investor as Miner Capitulation Reaches Day 27

The bitcoin price has fallen by 50 percent since July from $13,900 to sub-$6,900. The steep drop caused mining to be less profitable, causing small miners to sell-off.

Bad idea to long dropping bitcoin hashrate

During miner capitulation, small miners and mining centers tend to sell-off their holdings to cope with declining market sentiment.

Large miners have bigger capital and long-term commitments. As such, the capitulation often only impacts minor miners.

Still, Charles Edwards, head of digital asset management at Capriole, said that it is a bad idea to long bitcoin while its hashrate is on the decline.

Longing during bitcoin miner capitulation is not a good idea

Bitcoin is in a favorable range for investors to accumulate. It is down by more than half from its yearly high and the mid-$6,000 area has been a region of high trading activity since 2018.

But, it is risky to enter a position amidst miner capitulation because it has the potential to drop to much lower support levels in a short…