Analyst: Miner Surrender Discussions May Mark Bitcoin Low
Talks about the surrender of miners have been engaging the cryptocurrency community members over the past week. Even before the recent depreciation, a Byzantine General analyst pointed to $ 7,700 as the average cost of miners to mine one bitcoin. A sharp drop below this level once again raised concerns about the possibility of bankruptcy of miners and the emergence of a “death spiral” from the position of hash rate.
The light analyst believes that the spread of such fears is evidence of the market approaching lows: “If I had to name one lesson that I learned over the years of trading cryptocurrencies, I would mention the following: when people start to raise the topic of miner surrender, do not forget to open a long position “.
A similar opinion is shared by analyst DonAlt: “Now that the mood has switched from ‘halving will be bullish’ to ‘surrender of miners’, it’s time to go long again.” Earlier DonAlt said it would go short if the market rallies ahead of the halving and long if it collapses. “In crypt, big rumors and stories tend to move the market up. The question is, what will happen when the event itself comes?.
In 2018 and 2019, the rise in popularity of the topic of miner surrender coincided with the minimum levels of market cycles. So, in early December 2018, Santa Clara University professor Atula Sarin presented a publication for MarketWatch, in which, referring to the “mining death spiral,” he said that Bitcoin would soon be worthless. A week later, Bitcoin hit a low of around $ 3,150.
In previous times, however, these discussions took place without one variable, which is now present. In May, Bitcoin is waiting for a new halving, when the income of miners in cryptocurrency will be halved. Some fear that this event will become critical for them if the price of bitcoin does not recover by that time..
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