- Miner Capitulation is already over or did not even take place
- Miners are mining blocks at their fastest rate since June 2014
- The current “feeding frenzy” is so bullish on Bitcoin in the long term
Bitcoin News Today – During this year’s Bitcoin halving event, there were fears of capitulation in the market. However, that seems to have passed, and Bitcoin miners are now back in the game. Some of them are even taking it up a notch by activating new mining hardware. Recently, the activity in the mining space has been considerably high.
According to the Digitalik.net – a Bitcoin data analyst – miners are mining blocks at their fastest rate since June 2014.
We are currently in the fastest difficulty era since jun 2014.
— digitalik.net (@digitalikNet) June 7, 2020
Bitcoin (BTC) Price Today – BTC / USD
The Reduction of Bitcoin’s Mining Reward Did Not Slow down Miners
Other blockchain analysts have also been talking about the excitement among miners. The Chief Technology Officer of blockchain analytics company Glassnode – Rafael Schultze-Kraft – said on June 6 that there were three separate hours in which 12 blocks were mined. This came to the spotlight because only an average of six blocks was supposed to be mined each hour. The CTO said:
“We’ve seen 12 blocks produced within a single hour three times today already. Yesterday 14 blocks were mined within a single hour.”
The current frenzy of activity in the BTC mining space shows that the miner capitulation that many analysts feared appears to be over or it did not even take place. In response to the tweet of Preston Pysh, Matt D’Souza – the CEO of Blockware Mining – said that BTC miners were able to swap out their inefficient hardware for new hardware, hence mitigating the impact of the capitulation. He said:
“S9s/mid gen are getting swapped out for next gen. Luckily, the manufacturers didn’t accurately forecast. Next gen is sold out through October. […] There are 2 types of significant difficulty drops & I don’t consider them both miner capitulation: price induced and halving induced.”
The Transpiring “Feeding Frenzy” Is Bullish for Bitcoin on the Long Term
Preston Pysh – and author and financial analyst – said that the transpiring “feeding frenzy” is so bullish for the long term of Bitcoin (BTC). This shows that mining is once again profitable. The mining difficulty of the coin is also on the rise because of the increasing demand and popularity of the digital currency.
Pysh also pointed out other market trends that suggest Bitcoin (BTC) is locked up in an upward trend. Recently, he said that the fact that Grayscale Investments is amassing such an enormous amount of BTC is positive for the market. The author also pointed to the tensions between the US and China over Hong Kong as another market catalyst. In a tweet, he said:
“I think some of the bans on CNY companies and CNY currency moves have potentially caused a buying interest and hedge in BTC.”