The recent triggering of Bitcoin's hash ribbon indicates distress among miners, as the cost of mining has risen significantly, leading to some miners shutting down. The usual bullish signals associated with hash ribbons have not been effective this year due to changes in how miners finance their operations. Many miners are utilizing lending arrangements and have access to equity or debt instruments, which has altered their selling patterns. The Miners Position Index shows a low level of selling activity compared to historical trends as miners leverage their inventory for loans.
Bitcoin's hash ribbon has triggered signals indicating distress among miners as mining costs have risen too high, leading to some miners shutting down operations.
The recent inversion of short- and long-term hashrate measures causing hash ribbons to flash has not worked effectively this year for predicting market behavior.
Miners now fund themselves differently through lending arrangements and by selling equity or debt instruments, which alters their selling behavior regarding Bitcoin.
The Miners Position Index suggests miners are not selling off more Bitcoins than usual, indicating they are using inventory as collateral for loans.
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