Bitcoin mining has reached a significant milestone, as its difficulty level recently escalated to a historic peak of 114.7 T, reflecting a 5.61% surge after the latest adjustment. This notable shift aligns with the emergence of the Hash Ribbon indicator, often interpreted as a signal of miner capitulation. Such capitulation occurs when the costs associated with mining outpace the potential revenue, hinting at a possible local price floor for Bitcoin.
Recent analytics from Glassnode indicate that miner capitulation commenced in early February, coinciding with a decline in Bitcoin`s value, which has dropped over 4% this month. Historically, precedents show that these capitulation signals often presage a price bottom. Current assessments suggest that if this trend continues, Bitcoin`s low could stabilize near $91,000. Following the last capitulation indicator in October 2024, Bitcoin rebounded dramatically, achieving a 50% increase.
As the difficulty of mining intensifies, competition among miners escalates, compounding operational challenges. Data from January indicates that only Riot Platforms demonstrated a month-over-month increase in output among major publicly traded miners, highlighting the industry’s competitive landscape.
Source: https://en.coinotag.com/breakingnews/bitcoin-mining-difficulty-hits-record-high-amid-signals-of-miner-capitulation-whats-next-for-btc/