@franciszbhuntoz
Miner capitulation occurs when falling prices make mining unprofitable, forcing weaker miners to shut down and sell reserves. This creates short-term selling pressure but also reduces competition, stabilizing network difficulty. Historically, capitulation signals exhaustion of downside momentum, marking cycle bottoms. Surviving miners emerge stronger, restoring long-term sustainability. On-chain data showing spikes in miner outflows often coincide with final washouts before recovery. Thus, capitulation acts as both a cleansing event and a bullish reversal signal. While painful for participants, it underscores Bitcoin’s self-correcting mechanism, aligning supply dynamics with sustainable economics and reinforcing its resilience across cycles.
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