There is no doubt that “Bitcoin miner capitulation” is the flavor of the week for Crypto Twitter. Since BTC plunged dozens of percent over the span of 48 hours, all investors have been able to talk about is a potential collapse in the mining ecosystem.
While many of these fearful investors are making such discussion in anticipation of a further retracement in the value of digital assets, it ironically might be their calls for capitulation amongst Bitcoin miners that marks the start of a reversal to the upside. Here’s why.
Prior to the recent crypto market crash, most estimates put the cost of mining at around $8,000. Case in point: the below chart from prominent trader Byzantine General showed that the BTC production cost and average miner cash flow had trended towards $7,700. Read More...