$BTC ¿Miners in retreat? It could be the buying signal you've been waiting for! ⛏️📉
While Bitcoin struggles at $88,000, a technical data point is setting off the alarms (the good kind) the network's hashrate (the total mining power) has just suffered its biggest drop since April 2024.
Many think that if miners shut down their machines, it’s a bad signal, but VanEck says the opposite. Historically, this phenomenon is called "miner capitulation" and usually occurs very close to market bottoms, not tops.
Why is it a bullish signal?
- Market cleanup, the less efficient or highly indebted miners give up and sell their BTC. Once that selling pressure ends, the path is clear for upward movement. According to VanEck, when hashrate growth has been negative, Bitcoin has provided positive returns in the following 6 months 77% of the time. The "perfect DIP", buying during these hashrate corrections has historically improved future returns by about 2,400 basis points (an extra 24%).
🖇️ The health of the network is not always the same as today's price. When you see miners suffering, don’t panic; it’s the system "self-cleaning" to be more efficient. Financial markets are counterintuitive: the best opportunities arise when the ecosystem seems to be under the most pressure. If miners give up, diamonds are often nearby.
What do you think?
Do you believe this "cleanup" of miners is the push we need to see $100k by early 2026?
Comment!…
