Miners may be driving the recent Bitcoin price slide ahead of the halving, dumping coins to ensure their expenses get paid.
HALVING MAY TURN INTO NEGATIVE EVENT FOR BTC CONFIDENCE
The halving may turn out to be negative for Bitcoin (BTC) prices, as analysts suspect the recent price slide was triggered by a “miner capitulation.” A signal based on hash ribbons, a measure of mining activity, signals more selling may be in store.
Miners abandoning the network may signal a few things. One is the expectation for falling BTC market prices, which are no longer viable to support mining. The other possible explanation is that miners are switching off their facilities in a bid to lower difficulty.
With about two months left to the halving, miners struggle to make up as many high-reward blocks as possible. For now, the Bitcoin network is not threatened by a so-called “death spiral”, as the difficulty would adjust downward. The other encouraging factor is that the Bitcoin network is still supported by four or five very influential pools, which show no signs of abandonment. Read More...