In the face of miner capitulation, the Bitcoin BTC/USD market is showing impressive fortitude, keeping its price stable due to high demand.
What Happened: According to popular on-chain analytics firm CryptoQuant, hash ribbons, the metric that gauges the health of the Bitcoin mining ecosystem, indicated miner capitulation. This refers to the situation where miners stop mining activities due to low profitability.
This can be broadly attributed to Bitcoin’s recent halving event, which slashed block subsidies handed out to miners by half.
But despite these challenges for miners over the past month, the Bitcoin market has remained resilient.
In the past, such instances of miner capitulation, especially during the summer, have led to significant price fluctuations. However, in the present scenario, miners alone do not appear to significantly influence the price, according to the observations made by CryptoQuant author Kripto Mevsimi.
Even though miner capitulation usually puts downward pressure on Bitcoin’s price, the robust market demand is maintaining stability. This implies that the market is currently sturdy, with sufficient buying interest to offset selling pressure from miners.
Why It Matters: Amid the gloomy market, former President Donald Trump has tried to warm up to the Bitcoin mining industry in the U.S. In fact, he expressed his desire for all remaining Bitcoins to be mined in the country.
Trump viewed this as a strategic move to enhance the country’s energy dominance. This shift towards U.S. companies using domestic resources for Bitcoin mining could potentially impact the global Bitcoin mining landscape.
Price Action: At the time of writing, Bitcoin was exchanging hands at $66,766.35, following a 1.22% drop in the last 24 hours, according to data from Benzinga Pro. Shares of Mining Giant Marathon Digital Holdings Inc. MARA ended 1.53% lower at $20 during Thursday’s trading session. Riot Platforms Inc. RIOT stock jumped 3.2% higher to end at $10.98.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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