{"id":420130,"date":"2022-03-22T14:15:00","date_gmt":"2022-03-22T11:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\/"},"modified":"2022-03-22T14:15:00","modified_gmt":"2022-03-22T11:15:00","slug":"bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\/","title":{"rendered":"# Bitcoin hash rate may see \u2018small capitulation\u2019  with difficulty set for new all-time high"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27ec1602976\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27ec1602976\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\/#%E2%80%9D_Bitcoin_hash_rate_may_see_%E2%80%98small_capitulation_with_difficulty_set_for_new_all-time_high_%E2%80%9C\" >&#8221; Bitcoin hash rate may see \u2018small capitulation\u2019  with difficulty set for new all-time high &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\/#Questions_over_%E2%80%9Clull%E2%80%9D_in_hash_rate_after_record_highs\" >Questions over \u201clull\u201d in hash rate after record highs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\/#Difficulty_set_for_record_highs\" >Difficulty set for record highs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_hash_rate_may_see_%E2%80%98small_capitulation_with_difficulty_set_for_new_all-time_high_%E2%80%9C\"><\/span>&#8221; Bitcoin hash rate may see \u2018small capitulation\u2019  with difficulty set for new all-time high &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bitcoin (BTC) set a new all-time high for hash rate last week, but opinions are divided as to whether the uptrend can continue.<\/p>\n<p>In a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> debate on March 21, Preston Pysh, host of The Investor\u2018s Podcast, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PrestonPysh\/status\/1505928187552931849\">eyed<\/a> changing behavior in Bitcoin\u2018s hash ribbons <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/studio.glassnode.com\/metrics?a=BTC&amp;m=indicators.HashRibbon&amp;mScl=lin&amp;pScl=lin&amp;s=1577826000&amp;u=1647896399&amp;zoom=\">metric<\/a> for signs of a new hash rate \u201clull.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Questions_over_%E2%80%9Clull%E2%80%9D_in_hash_rate_after_record_highs\"><\/span>Questions over \u201clull\u201d in hash rate after record highs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin has overcome considerable odds over the past year to see the processing power dedicated to mining \u2014 hash rate \u2014 reach a giant 222 exahashes per second (EH\/s) this month, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/miningpoolstats.stream\/bitcoin\">according<\/a> to estimates from monitoring resource MiningPoolStats.<\/p>\n<p>First China sparking a mass miner exodus, then this year\u2018s crackdown\u00a0of mining hubs in Kazakhstan put the cat among the pigeons in terms of miner operation.<\/p>\n<p>Nonetheless, a full recovery ensued on both occasions, reinforcing the idea that as long as there is at least one \u201cfriendly\u201d jurisdiction for miners, mining will come back harder than ever before.<\/p>\n<p>Hash ribbons use two simple moving averages (SMAs) of hash rate to assess miner health and has\u00a0been used to conclude when likely price bottoms are near based on that health.<\/p>\n<p>Miners have a breakeven cost for producing each Bitcoin, and when the spot price is lower than that cost, the danger arises that they will begin to \u201ccapitulate,\u201d or cease operations due to a lack of profitability. This has the knock-on effect of reducing price performance, and an adjustment in Bitcoin network difficulty is needed to lower miners\u2018 production costs en masse.<\/p>\n<p>In terms of hash ribbons, when the 30-day SMA crosses under the 60-day SMA, this suggests a capitulation event \u2014 at least large enough to measure \u2014 has occurred.<\/p>\n<p>\u201cA simple 1- and 2-month simple moving average of Bitcoin\u2019s hash rate can be used to identify market bottoms, miner capitulation and \u2014 even better \u2014 great times to buy Bitcoin,\u201d Charles Edwards, CEO of asset manager Capriole, who created the metric, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/capriole\/hash-ribbons-bitcoin-bottoms-60da13095836\">explained<\/a> in a blog post in 2019.<\/p>\n<blockquote><p>\u201cWhen the 1-month SMA of Hash Rate crosses over the 2-month SMA of Hash Rate, the worst of the miner capitulation is typically over, and the recovery has begun.\u201d<\/p><\/blockquote>\n<p>This time, events in Kazakhstan could have formed the trigger for a capitulation event, which has, nonetheless, already been erased in terms of hash rate growth.<\/p>\n<p>\u201cMargins are still very healthy. Production cost is low-mid 30s. Electrical (running) cost is low 20s,\u201d Edwards responded to Pysh, referencing a theory by Blockware analyst Joe Burnett. <\/p>\n<blockquote><p>\u201cI think (Burnett&#8217;s) reasoning re- Kazakhstan is most logical. So perhaps a small capitulation (provided broader macro\/market strength).\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/27991adb-72f3-4f2d-8507-0ab0590c8720.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin hash ribbons vs. BTC\/USD chart. Source: Glassnode<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Difficulty_set_for_record_highs\"><\/span>Difficulty set for record highs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2018s not just hash rate: Mining\u00a0difficulty is also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.blockchain.com\/charts\/difficulty\">enjoying<\/a> a winning streak that looks set to resume this month after its own brief consolidation.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin \u2018could easily see $30K\u2019 with stocks due to 30% drawdown in 2022 \u2014 Analyst<\/em><\/strong><\/p>\n<p>As the most important of Bitcoin\u2018s fundamentals indicators, the difficulty is set to increase by an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/btc.com\/stats\/diff\">estimated<\/a> 4.66% at the next automated readjustment in eight days\u2018 time.<\/p>\n<p>The last two readjustments were both negative, but only just, meaning the upcoming increase will send difficulty to new all-time highs of 28.73 trillion.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-03\/41161399-3523-4049-8f3f-0967b5ea88cc.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin difficulty 7-day moving average chart. Source: Blockchain<\/em><\/figcaption><\/figure>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-hash-rate-may-see-small-capitulation-with-difficulty-set-for-new-all-time-high\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin hash rate may see \u2018small capitulation\u2019 with difficulty set for new all-time high &#8220; Bitcoin (BTC) set a new all-time high for hash rate last week, but opinions are divided as to whether the uptrend can continue. In a Twitter debate on March 21, Preston Pysh, host of The Investor\u2018s Podcast, eyed changing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":420131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvMWViMTcwZTItYWI2NC00ODVmLTgxZTAtZDRiZmNkNjk1MTE4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75462,75042,73785],"class_list":["post-420130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-hash-rate","tag-mining","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/420130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=420130"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/420130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/420131"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=420130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=420130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=420130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}