Bitcoin

Why the Bitcoin miner capitulation was in 2022

04/27/2023
Bitcoin Ethereum News

Quick Take

  • Between the months of November 2022 and January, Bitcoin fell below $20k.
  • According to the Difficulty regression model (The all-in cost to mine 1 Bitcoin), it was an unprofitable time for miners.
  • Miners were distributing coins in excess of the mined supply, with Values > 100%, and depleting treasury reserves.
  • Now, the miner supply spent indicates value = 100%; in the aggregate, a volume of coins equal to the total mined supply was spent. This is supported by the miner balance which is flat year-to-date.
  • In Tuur Demeester’s latest report, CryptoSlate agrees that miner capitulation was last year, and miners are much stronger from a debt position point of view (See extract below).
Difficulty Regression Model: (Source: Glassnode)
Difficulty Regression Model: (Source: Glassnode)
Tuur Demeester's: (Source: Adamant)
Tuur Demeester’s: (Source: Adamant)
Miner Wallet: (Source: Glassnode)
Miner Wallet: (Source: Glassnode)
Miner Wallet Spent: (Source: Glassnode)
Miner Wallet Spent: (Source: Glassnode)

The post Why the Bitcoin miner capitulation was in 2022 appeared first on CryptoSlate.

Source: https://cryptoslate.com/insights/why-the-bitcoin-miner-capitulation-was-in-2022/