Bitcoin miners are facing capitulation issues as the Bitcoin Miners’ Position Index (MPI) signals a persistent trend of accumulation or holding behavior. Over the past six months, the MPI, which indicates miner activity, has shown a prolonged period of negative values.
Read CRYPTONEWSLAND onThis trend suggests that miners are either holding onto their Bitcoin or accumulating more, despite a general decline in Bitcoin prices.
The MPI has been predominantly negative in recent months, depicted by red bars on the chart. This indicates that miners are not selling their Bitcoin holdings, a behavior that starkly contrasts with earlier periods on the chart where positive MPI values (green bars) signaled active selling.
The Bitcoin price, represented by a black line on the chart, has been on a downtrend, currently hovering around $60,300. This price decline, coupled with persistent negative MPI values, hints at potential miner capitulation.
Source: Ali Charts
The sustained negative MPI values in the face of falling Bitcoin prices suggest that miners might be holding onto their Bitcoin due to the inability to sell at a profit or in anticipation of future price increases.
This holding behavior could reflect financial strain, as miners may not be able to cover production costs at current price levels. The chart highlights significant volatility in MPI, with rapid shifts between positive and negative values, particularly noticeable in the earlier months.
Earlier in the observed period, positive MPI values indicated times when miners were actively selling their holdings, likely capitalizing on higher prices.
However, the recent trend of sustained accumulation suggests a challenging period for miners. The negative MPI values amidst declining prices could indicate that miners are holding onto their Bitcoin due to profitability pressures or expectations of a future price rebound.
Based on indicators, some market analysts make conjectures that a bull run is likely to push the prices of Bitcoin up to $100,000. However, negative MPI values cast doubt on whether mining operations could be sustained if things went that way.
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