Prelude to Bull Run: Bitcoin Hash Ribbons Signal Miner Capitulation Only Just Started

Hash rate is plummeting faster than Bitcoin’s price, suggesting that miners are starting to turn off their machines and await higher prices to return.

An indicator called Hash Ribbons is signaling that miners are only just beginning to capitulate. And while this could suggest more downside in the near term, once things return to normal, the lows act as the final shakeout before a new bull run begins.

Hash Ribbons Signal Miner Capitulation Has Only Just Begun

Bitcoin derives much of its value from its decentralized blockchain network, which is kept operating by a process called proof-of-work, where miners make complex computations that validate each block, keeping the network running and secure.

These miners act as the backbone to the overall supply and demand of the Bitcoin market. They drive the bulk of the supply flooding the market, as all Bitcoin ever sold originated from this process.

Related Reading | Miner Capitulation: Hash Rate is Dropping Faster Than Bitcoin Price 

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