- After a series of capitulations, Bitcoin miners could be returning. At least the data of Coin Dance signals this.
- Despite the bearish market, Bitcoin’s hash rate reached a new record high.
The news about a significant number of small Bitcoin miners who have capitulated over low prices seems to have changed trend. New figures from Coin Dance, indicates a rebound in the hash rate of Bitcoin and a slight increase in its difficulty.
Still, the community continues to discuss the fall in the price of Bitcoin and the prices of most major cryptocurrencies. While some analysts predicted that the fluctuation of miners will continue, the Coin Dance data does not support this thesis.
Bitcoin miners return despite bear market
One of the reasons for the bearish market which was speculated about was the capitulation and the subsequent increase in sales volume by small miners, emptying their wallets. This happened only a few days ago, as CNF reported.
However, new figures from the Coin Dance platform reveal a new trend. Despite the fall in prices, which is why miners were thought to be capitulating, Bitcoin’s hash rate has reached a new record: 134 quintillons of hashes every second.
Coin Dance data places the hash rate at a time prior to the onset of the bear market. At that time, the price of Bitcoin was still above $8000 USD.
The theory on the capitulation of the miners is also based on the Halving that will take place next year. It was thought that the miners would be anticipating this event. Historically, the Halving led to a decrease in the number of miners due to the reduction in mining rewards. Considering both Halving and bear market factors, there would be some logic behind the reported capitulation movement.
However it seems too soon to think that this trend has come to a halt, especially considering that the bear market is expected to continue until mid next year. Some analysts think that miners’ withdrawals will increase and others argue that miners are ready for Halving and will hold their positions.
Bitcoin price rebound could occur after Halving
The voices in the cryptocommunity are divided over where the market is currently going. While there are pessimistic analysts, others think like Charles Hoskinson, the creator of Cardano said through his Twitter account that the current bearish trend is just cleaning up the market.
In addition, he is optimistic about price developments. According to Hoskinson, Bitcoin will soon return to 10,000 USD. If he’s right, everything points towards Halving. During this event, the price of Bitcoin is likely to gain momentum again.
Another relevant fact is that the difficulty of the Bitcoin blockchain, has registered a slight increase. This is another possible, although less accurate, indicator that the conclusion over the capitulation of the miners was rushed.
The price of Bitcoin stands at $ 7.078 USD and maintains its downward trend with 1.67% in the last 24 hours. It remains to be seen if the data collected by Coin Dance will have a visible effect on the crypto market prices.