Historic mining capitulation nears end, pointing to bitcoin price stabilization

The worst of Bitcoin's 50% drawdown appears to be concluding as the Hash Ribbon indicator nears a recovery signal, marking the end of a three-month miner capitulation, one of the longest on record according to Glassnode data. Miner capitulation occurs when revenue falls below operating costs, forcing inefficient miners to shut down and sell BTC reserves, which reduces hash rate and adds sell pressure. The recovery signal triggers when the 30-day hash rate moving average crosses back above the 60-day average, indicating miners are returning online. Since late November, Bitcoin fell from $90,000 to near $60,000 before rebounding to $65,000. Furthermore, Bitcoin is now trading below its estimated average production cost of $66,000, a level historically associated with deep value bottoms, similar to November 2022.

(Source：CoinDesk)