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Why the Bitcoin miner capitulation was in 2022

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

James Van Straten
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James Van Straten
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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)
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Bitcoin Glassnode Tuur Demeester
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James Van Straten
James Van Straten
Former Lead Analyst CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century's paramount invention.

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