Bitcoin really hasn\u2019t done too well over the past few days; since the $9,200 peak seen on Saturday, the price of the cryptocurrency crashed as low as $3,800, marking a more-than-50% crash from the weekly high.<\/p>\n
Unfortunately, a key signal suggests that the prospects of recovery may be diminishing.<\/p>\n
While many stories in the media paint Bitcoin mining as a key to easy riches, this isn’t always the case; over the past few months, it has been estimated that the cost of mining a single BTC came in around $8,000, assuming standard electricity prices and the newest publicly-available hardware.<\/p>\n
This means that with the weakness, higher-cost miners have been forced out of the market, marked by the 30% drop (per data from Blockchain.com) from the all-time high hash rate established just last week.<\/p>\n
This means that the Hash Ribbons, an indicator tracking the moving averages of the hash rate, is on the verge of printing a signal of “miner capitulation,” when miners are forced out of the market en-masse due to BTC trading below the cost of mining.<\/p>\n
\nHash Ribbons coming in hot for another Miner Capitulation.<\/p>\n
Currently a 1 week data delay so crossover may have already occured…#Bitcoin<\/a> pic.twitter.com\/uPektFzeJX<\/a><\/p>\n
— Charles Edwards (@caprioleio) March 14, 2020<\/a><\/p><\/blockquote>\n