Bitcoin Hash Rate Reaches New All-Time High as Miners Refuse to Capitulate

News
Mon, 12/23/2019 - 19:26
Alex Dovbnya
Bitcoin defies all the FUD about miner capitulation with its hash-rate reaching a new record high
Cover image via U.Today
Contents

In spite of Bitcoin's underwhelming price performance in Q4, its hashrate has just reached an all-time high of 111.86 EH/s, BitInfoCharts data shows.  

image by bitinfocharts.com

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Did miners actually capitulate?  

As of recently, there's been plenty of fear, uncertainty, and doubt (FUD) about miner capitulation that could trigger another immense market sell-off and possibly push the BTC price to new yearly lows. 

On Dec. 17, Capriole's head of digital asset management Charles Edwards claimed that the capitulation wouldn't stop unless Bitcoin's hash rate showed some consistent growth. This is exactly what was happening for the past four days -- the top coin's hash power surged from 86.87 EH/s to the above-mentioned ATH. 

Now, Edwards states that the hash rate has finally recovered, which could mark the end of the latest "shallow" capitulation that only lasted a little more than a month. 

image by @caprioleio 

Related
Bitcoin Mining Breaks Even at $8,000, Why Rising Hash Rate is a Positive Indicator of Price

A powerful buy signal 

Historically, miner capitulations are the best periods to stack more sats. One can spot the end of this capitulation with the help of the so-called Hash Ribbon indicator.

When the one-month SMA of Bitcoin's hash rate surpasses the two-month SMA, it usually represents a great buying opportunity. Edwards predicts that such a rare occurrence could happen on Christmas Day.        

Is Bitcoin on the verge of another bull run? Feel free to leave your comment!  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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