Crypto Expert Says There Is 60 Percent Chance of Bitcoin Miner Capitulation

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Mon, 11/18/2019 - 17:53
Alex Dovbnya
It is likely that Bitcoin miners will start unplugging their equipment en masse as the BTC price continues to fall
Crypto Expert Says There Is 60 Percent Chance of Bitcoin Miner Capitulation
Cover image via U.Today

Cryptocurrency analyst Charles Edwards has estimated that there is a 60 percent chance that another miner capitulation, the dramatic drop of Bitcoin's hash rate, will take place soon. Miners have to decide whether they want to call it quits or run their operations at a loss in order not to miss out on a potential bull run. 

Related Bitcoin Price Could Soon Drop 40 Percent, BitMEX Data Shows
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Bitcoin Price Could Soon Drop 40 Percent, BitMEX Data Shows

In his Medium article, Edwards opined that there was an intrinsic link between hash rate and price. The new price bottom tends to coincide with miners leaving the Bitcoin network en masse. Hence, buying new coins when the hash rate reaches a local low could be an excellent opportunity to generate big returns (as the table below shows).

Potential returns
image by @charleswedwards

Hash rate is not as volatile as price. The biggest drop that has been recorded since 2010 is only 53 percent (a world of difference compared to Bitcoin's record-holding 93 percent drop).       

Related Bitcoin Mining No Longer in Danger of Being Banned by Chinese Government
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Bitcoin Mining No Longer in Danger of Being Banned by Chinese Government

As reported by U.Today, Bitcoin's mining difficulty, which gauges the amount of computational power that is required for solving one BTC block, declined by seven percent on Nov. 7. However, Dutch permabull "Plan B" predicted that the next adjustment would be positive for Bitcoin based on its growing hash rate.

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.