Bitcoin Volatility: BTC Struggles Above $6,600; Miner Capitulation To Bring Further Price Drops
Bitcoin’s price saw a pretty significant drop and it dragged the whole crypto market lower. At the moment of writing this article, the most important coin is trading in the red and BTC is now priced at $6,665.55.
Bitcoin could see more price drops
The king coin has been rising in price recently, and one crypto analyst pointed out the fact that BTC could still drop further even though it’s bullish momentum seemed that it was claiming something else.
CryptoDaily mentions that the analyst who goes by the name @mansasuma believes that this would be a result of miner capitulation which is happening right now.
This is what happens in the crypto space when ming is no longer a profitable option.
Miners are capitulating
Many miners will capitulate as profits dry up, and they still have the most of the BTC holdings which help them cover the costs.
Following this selling pressure is increased, and a drop in the network hash rate will occur.
“Throughout March, we saw a massive 50% drop in the price of BTC with the harsh rate dropping from a high of over 130TH/s to 80TH/s. Even though the price has recovered since, it has led to many commentators to speculate on the future,” CryptoDaily writes.
The analyst mentioned by the online publication noted that this isn’t an unusual occurrence during a Bull market. He also pointed out that the current set up is not indicating any strong divergence.
Right, time to crush some bullish dreams
So you know how we get miner capitulation talk after every single +20% dump in Bitcoin land?
Well, funnily enough I haven´t seen a single post mentioning this which is really strange BUT..
— Mansasuma (@mansasuma) April 6, 2020
He pointed out that miner capitulation is happening as we speak.
The halving which is less than a month away, is expected to boost BTC’s price. Stay tuned to see how this plays out.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.