Why the Bitcoin miner capitulation was in 2022

Bitcoin (BTC) miners' aggregate debt positions have become much more manageable, according to TuurDemeester.

This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Make preferred on Google logo

Quick Take

  • Between the months of November 2022 and January, Bitcoin fell below $20k.
  • According to the Difficulty regression model (The all-in cost to mine 1 Bitcoin), it was an unprofitable time for miners.
  • Miners were distributing coins in excess of the mined supply, with Values > 100%, and depleting treasury reserves.
  • Now, the miner supply spent indicates value = 100%; in the aggregate, a volume of coins equal to the total mined supply was spent. This is supported by the miner balance which is flat year-to-date.
  • In Tuur Demeester's latest report, CryptoSlate agrees that miner capitulation was last year, and miners are much stronger from a debt position point of view (See extract below).
Difficulty Regression Model: (Source: Glassnode)
Difficulty Regression Model: (Source: Glassnode)
Tuur Demeester's: (Source: Adamant)
Tuur Demeester's: (Source: Adamant)
Miner Wallet: (Source: Glassnode)
Miner Wallet: (Source: Glassnode)
Miner Wallet Spent: (Source: Glassnode)
Miner Wallet Spent: (Source: Glassnode)