Bitcoin‘s network underwent a difficulty adjustment of 16 percent recently in order to bring back a modicum of stability to the mining ecosystem. With many miners speculated to operate at a loss, the adjustment was made to bring operations back to normal standards.
However, with growing concerns about miners’ capitulation in the space post-halving, a recent report has claimed that capitulation post-halving may inherently reduce sell-pressure on Bitcoin.
The report claimed that many miners shut down their operations when their profit margins are unable to keep up with their electricity expenses, hence, the Bitcoin selling pressure from miners’ end increases across the network.
However, only inefficient miners undergo capitulation, allowing for efficient miners to take control.
Assuming Bitcoin rallies to $7500 post-halving, the newly-minted BTCs will be distributed between efficient miners. This will reduce the sell-pressure on Bitcoin’s valuation as these miners are well-above their breaking price due to lower electricity expenses. Read More...