[2022-06-23] Bitcoin Struggles to Rebound as Miner Capitulation Continues

[franch]

According to a recent report from Coin Metrics, miners have sold at least $500 million worth of Bitcoin so far in June.

Bitcoin Miners Sell Reserves
The once-booming Bitcoin mining industry has become its own worst enemy.

Multiple reports indicate that Bitcoin miners are selling off more coins to cover the cost of their operations. The increased selling is weighing on any potential Bitcoin recovery, leading to more selling as miner profitability continues to sink below the cost of production.

A recent report from Arcane research has revealed a significant uptick in the amount of Bitcoin leaving miners’ wallets. “In the first four months of 2022, public mining companies sold 30% of their bitcoin production. The plummeting profitability of mining forced these miners to increase their selling rate to more than 100% of their output in May,” the report read, indicating that operational costs exceeded miners’ profits, forcing them to dip into their Bitcoin savings to make up the difference.

Source: https://cryptobriefing.com/bitcoin-struggles-to-rebound-as-miner-capitulation-continues/?utm_source=feed&utm_medium=rss

[bbc.reporter]

It appears that bitcoin news media is trying very hard to create a storyline that there is a miner capitulation presently happening in the cryptospace. This is very similar to 2018 and 2019 when clickbait titles with articles of poor research were published.

There is no miner capitulation. This is fud. If miners sell more coins, this should certainly be most welcome for the community because more coins in the community's hands are more chances for those coins to be in circulation. This is important for bitcoin's growth as a currency.

[stompix]

It appears that bitcoin news media is trying very hard to create a storyline that there is a miner capitulation presently happening in the cryptospace.

Bitcoin news media has always been filled with a ton of garbage, now when there are thousands of them and funds are running low for advertising they are getting even more desperate with stupid titles to gain an audience.

Capitulation would mean miners would stop their machines  before a complete liquidation of their business, but any moron who would find free seconds free to look at a difficulty/hashrate chart would see there is no such thing as a capitulation, no major shutdown no nothing!  Actually, quite ironically, the hashrate estimation for the current period is up, it is indeed still early as only one day and a half has passed but the pace is still faster, at 101% compared to the previous. Mining profitability is still 20% up from the levels at the end of 2020 levels, there won't be any major shake-up unless we dip in the 15k range, but complete capitulation won't happen.