Bitcoin (BTC) has just reached its highest mining difficulty level in history – 114.7 T, after increasing by 5.6% over the past weekend. At the same time, the Hash Ribbon indicator is signaling a capitulation of miners – a sign that usually indicates that the price of Bitcoin may be approaching a bottom.
Miners Are Under Great Pressure
#HashRibbon is an important market indicator, appearing when the cost of mining Bitcoin exceeds profits, forcing many miners to cease operations. According to data from Glassnode, this capitulation phase began in early February.
History shows that when this indicator appears, the price of Bitcoin often hits a bottom. The last time was in October 2024, after which BTC rose by 50%. If this scenario repeats, Bitcoin may have created a bottom around $91,000 before recovering.
Bitcoin Mining Difficulty Continues to Rise
🔹 Bitcoin mining difficulty adjusts every 2,016 blocks (~2 weeks), aiming to maintain an average block creation time of 10 minutes.
🔹 On February 4th, #hashrate of Bitcoin (total hashing power of the network) also reached an all-time high, causing a significant increase in mining difficulty.
🔹 As difficulty increases, BTC mining becomes more competitive, putting significant pressure on miners, especially smaller companies with high operating costs.
🔹 January 2025 production data shows that Riot Platforms (#RIOT ) is one of the few Bitcoin mining companies with growth in production compared to the previous month.
Is Bitcoin About to Surge?
Currently, BTC has dropped more than 4% in February, but the miners' capitulation signal may indicate that a bullish cycle is about to begin. Investors are closely monitoring to see if BTC will replicate the strong upward trend like at the end of 2024.
📉 Is Bitcoin hitting a bottom or is this just the beginning of a larger correction? Let's wait and see the market's next developments! 🚀