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Analyst: Bitcoin miners are marking time

Glassnode analyst James Check, known under the nickname Checkmatey, doubted the capitulation of Bitcoin miners after the halving, although he admitted that they were “treading water.”

“We are in a period of inversion of the Difficulty Ribbon and blocks are being generated 14 seconds slower than they should be. This indicates that there is less hashrate in the network,” confirmed Checkmatey.

However, he estimates that no more than 5% of Bitcoin’s computing power is experiencing difficulties. The check believes that this is “not that much,” and the market situation does not look like a “total sell-off.”

According to Glassnode, smoothed by the seven-day moving average (7 DMA), the hashrate is at 592.2 EH/s. The value is approximately 9% lower than the 649.7 EH/s recorded on the eve of the halving of the reward for the mined block in April.

“Miners may be treading water, they probably won’t capitulate to the full extent of the bear market. Most likely, they were just stuck mining 10 bitcoins and selling them,” Checkmatey admitted.

The analyst also noted that the share of commissions in the total income of cryptocurrency miners reached 10%. According to him, miners need to adapt to a situation where network fees will become the main source of revenue after the block reward is reduced from 6.25 BTC to 3.125 BTC.

Earlier, the creator of the metric, founder of Capriole Investments Charles Edwards, drew attention to the inversion of Hash Ribbons – the excess of 30 DMA over 60 DMA.

In his opinion, the phase marks the capitulation of miners and gives an “optimal signal” about the profitable purchase of digital gold.

Source: Cryptocurrency

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