The Ongoing Miner “Feeding Frenzy” Is Bullish for Bitcoin in the Long Run

After fears of “capitulation” passed over the market, Bitcoin miners are back in the game, activating new hardware once again after May’s block reward halving.

There’s been such a high amount of activity in the mining space that according to Bitcoin data analyst Digitalik.net, blocks are being mined (on average) at their fastest rate since June 2014.

The excitement among miners has been echoed by other blockchain analysts.

Rafael Schultze-Kraft, CTO of blockchain analytics firm Glassnode, shared on June 6th that on that day, were three separate hours in which 12 blocks were mined. This is notable because an average of only six blocks is supposed to be mined each hour.

“We’ve seen 12 blocks produced within a single hour three times today already. Yesterday 14 blocks were mined within a single hour,” he commented.

Related Reading: Crypto Tidbits: $200M of Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish

This Is Bullish for Bitcoin

The frenzy of activity going on in the Bitcoin mining space confirms that the “miner capitulation” that analysts feared is already over or didn’t even take place.

Chief executive of Blockware Mining Matt D’Souza explained in response to Preston Pysh’s tweet that Bitcoin miners were able to swap out their inefficient hardware for new hardware, thus mitigating the brunt of the capitulation:

“S9s/mid gen are getting swapped out for next gen. Luckily, the manufacturers didnt accurately forecast. Next gen is sold out through October. […] There are 2 types of significant difficulty drops & I don’t consider them both miner capitulation: price induced and halving induced.”

Analysts also say that the rapid block times are bullish for prices.

Financial analyst and author Preston Pysh said that the “feeding frenzy” that is…

Read More