Exactly one year has passed since miners left China en masse due to local repression in search of new havens. Now they have to survive again, and this time the problems are more serious.
Bitcoin collapsed to the values of 2017, and the total capitalization of cryptocurrencies was reduced three times to $ 860 billion. Such a rapid fall in market quotes puts many debt miners before a choice: stop data centers in anticipation of growth in the market or look for new investors. Judging by the on-chain data, the miners are waiting and watching. It is possible that the capitulation phase has not yet acquired a mass character.
As you can see in the chart above, the move of miners from China in the summer of 2021 was the most notable event in terms of hash rate collapse in the last three years. If the hashrate collapsed (-65%) Due to Beijing’s tough position, the indicator fell by 65% in less than a month, but it took the rest of 2021 to restore capacities.
Now, of course, the situation is different. So far, companies are trying to maintain production capacity and are looking for new investors. In any case, the hashrate crisis in 2021 was more due to logistical and bureaucratic problems, which could have affected such a long recovery. If the current capitulation of miners, as Glassnode claims, has already begun, then the process will probably drag on for a long time.
From a historical point of view, all previous hash rate drops have always lasted at least a month. Now, according to testimony Hash Ribbon indicator (estimates the probability of capitulation of miners), the withdrawal of cryptocurrency miners began on June 16.
One way or another, network indicators show that the current miner capitulation does not seem to have entered the active phase yet, and miners are still looking for a “plan B”, which some major players in the crypto market have already hinted at.
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