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️ Bitcoin miners hit a breaking point - what's next?
Plus: Michael Saylor pitches Bitcoin banks |
You know when your Wi-Fi goes out for 10 seconds, and you lowkey assume the modern civilization has collapsed. That was crypto this week. Traders panicked. Timelines called cycle top. But then, things started looking a bit more optimistic. Let's break down what happened beneath the surface 👇
It starts with miners, aka the people / companies converting electricity into BTC, aka the supply side of Bitcoin. And they've been under pressure lately: 👉 Post-halving rewards are lower; 👉 Energy costs remain high; 👉 Margins across the industry are thin. As a result, mining became unprofitable for weaker miners, so they started shutting down. In crypto, that's called miner capitulation. ❌ Now, capitulation is BAD while it's happening… because miners are forced to sell their Bitcoin just to stay alive = heavy, constant downward pressure. ✅ … but GOOD once it's over, because those weakest miners finally go offline and their forced selling stops = a major source of sell pressure gets removed from the market. And that's the shift we just saw. When miners shut off machines, the network's computing power drops. That's why the Hash Ribbons indicator matters - it looks for the moment things stop getting worse and start stabilizing. And it just flashed a bullish signal. This doesn't guarantee liftoff, but it signals the worst selling pressure is easing.
To double-check that, we look at miner reserves: still around 1.8M BTC - steady. Meaning: no panic dumping, no forced liquidation, no "everybody's dying, sell everything" energy. So, the simplified chain looks like this: Mining got harder → weak miners failed → forced selling peaked → that pressure faded → network stabilized → price got room to breathe. Basically, we're no longer in "we're doomed" territory. We're now in "okay... the bleeding stopped" territory. And in crypto, that alone is a pretty big upgrade.
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