What happen to hashrate while miners sell tokens out

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Elena Klimovich

16:50 04/07/2022

330
What happen to hashrate while miners sell tokens out

A year ago miners faced the first serious problem – the pressure from China's authorities. That day they had to relocate and look for a new shelter where they could work safely.

Now everything is much more difficult. Capitalization of the cryptomarket shortened triply and the cost of bitcoin fell by the 2017 level. Against the backdrop of the current, miners have to make a choice between the stopping of all processes till better times and attracting the investments. According to the latest data the capitulation hasn’t been mass yet and market participants wait what will happen further.

Last year the hashrate fell by 65% during one month and was connected with relocation from China. Indicators recovery took more than 6 month. Now we can see the different situation when companies are looking for a foundation trying to save capacities for continuing the processes. This is the reason why the situation seems more positive to us and we can’t notice the hashrate collapse.

But as the Glassnote claims the capitulation of miners has begun already. According to the Hash Ribbon index it started on the 16th July. Historically we noticed that the process takes about one month so it means that the situation will be worse.

If to take into account network indicators the capitulation of miners is still far from the active phase. Looking for new investors by market participants can give us hope for the future.


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