Bitcoin Miners’ Capitulation Sparks Optimism for Market Bottom
- Largest token has tumbled about 75% from all-time high
- Selling pressure from miners has dropped since peak in spring
A technician inspects bitcoin mining machines at a mining facility in Ordos, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Bitcoin miners are sending a signal that suggests they’ve reached the point of capitulation, raising hope among beleaguered crypto enthusiasts that the digital-asset market collapse may be nearing a bottom.
Mining difficulty, a measure of the total amount of computing power dedicated to minting the tokens, dropped by 7.3% over the most-recent two-week period ended Monday. That’s the biggest decline since July 2021, shortly after China banned the process, forcing operations in the nation to shut down computing facilities.