Bitcoin miner capitulation happens when Bitcoin miners are forced to sell their coins because mining becomes too expensive or unprofitable. Miners earn Bitcoin by verifying transactions, but they also have big costs like electricity, machines, and maintenance. When the Bitcoin price drops or mining difficulty rises, some miners can’t cover their expenses. That is when they start selling their Bitcoin reserves to survive, or they shut down completely.

This heavy selling can push the market down even more for a short time. It may look scary, but it often becomes a turning point. The reason is simple. Once weak miners leave the market, the selling pressure starts to slow down. At the same time, stronger miners stay active and the network becomes healthier again. Many investors also watch miner capitulation closely because it has happened near major bottoms in the past.

After capitulation, Bitcoin can bounce because the market has already absorbed a lot of forced selling. When selling reduces and buyers step in, price can recover faster than expected. Of course, it is not a perfect signal every time, but it is a useful clue that the market may be near the end of a downtrend.

For more info visit the website Coinography.

Bitcoin miner capitulation happens when Bitcoin miners are forced to sell their coins because mining becomes too expensive or unprofitable. Miners earn Bitcoin by verifying transactions, but they also have big costs like electricity, machines, and maintenance. When the Bitcoin price drops or mining difficulty rises, some miners can’t cover their expenses. That is when they start selling their Bitcoin reserves to survive, or they shut down completely.

This heavy selling can push the market down even more for a short time. It may look scary, but it often becomes a turning point. The reason is simple. Once weak miners leave the market, the selling pressure starts to slow down. At the same time, stronger miners stay active and the network becomes healthier again. Many investors also watch miner capitulation closely because it has happened near major bottoms in the past.

After capitulation, Bitcoin can bounce because the market has already absorbed a lot of forced selling. When selling reduces and buyers step in, price can recover faster than expected. Of course, it is not a perfect signal every time, but it is a useful clue that the market may be near the end of a downtrend.

For more info visit the website Coinography.