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Bitcoin miner capitulation over in September? First increase since June



 Bitcoin ( BTC ) miners have been capitulating for almost two months, but now an end may be in sight.


Blockchain infrastructure and cryptocurrency mining company Blockware hinted as much in its latest Intelligence Newsletter on July 29 .


The current issue of the newsletter has highlighted changes in the mining ecosystem, signaling a change in trend since early June.


According to the Hash Ribbons indicator, miners have been withdrawing for “a long time,” Blockware said. On August 1, the indicator has been signaling a capitulation for 55 days.


"The current miner capitulation started on June 7, 2022 and has lasted for a considerable time. It is important to note that miner capitulations are particularly relevant as they show that many machines are no longer hashing," the company said:


“Since June 7th, more new-generation mining rigs have likely been commissioned by both public and private miners. However, enough old-generation machines or inefficient, overloaded miners have now been shut down that the hashrate and difficulty have actually dropped are."

This upheaval highlights the hurdles to profitability created by the Bitcoin price collapse. The price fell to $17,600 in June, taking the market back to where it was at the end of 2020.


There are more and more signs that Bitcoin is regaining strength , even if they are controversial. But the chances of better conditions for the mining companies are at least increasing. According to Blockware, the surrender, as signaled by the hash ribbons, should be over before the summer.


“If there are no new Bitcoin lows, we can expect the miner capitulation to end in August or September at the latest,” the newsletter continues.

Difficulty should end multi-month downtrend

The first on-chain signals are already visible that the miners are getting back into shape. For example, adjusting Bitcoin difficulty.


Mining difficulty will rise again on August 4th for the first time in two months, after previously correcting down three times in a row.


"Currently, an increase is forecast and there is a high probability that it will remain so," summarized Blockware.


If the price stays at the current level, the increase will be rather modest at around 0.5 percent. For comparison, the previous decrease in difficulty was 5 percent.

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