On-chain data indicates the capitulation of Bitcoin miners - ForkLog

# On-chain data indicates capitulation of Bitcoin miners

The current ratio of the price of the first cryptocurrency to mining difficulty repeats patterns from previous bear cycles. An expert under the pseudonym Killa pointed this out.

Source: X. He believes that the capitulation phase is the clearest signal for accumulating digital gold. Killa suggested that the final bottom of the current cycle will be updated later. According to his forecast, this will happen amid a correction in the stock markets, and the bear market bottom will form by the end of this year.

Charles Edwards, founder of Capriole Investments, confirmed that the first cryptocurrency is trading at production cost. According to him, the average profit margin for miners has fallen below 5%.

Source: X. Edwards estimated the total cost of producing one BTC at $61,200. Of this amount, energy costs account for about $48,965. When the market price of the asset approaches these levels, it often signals the formation of a long-term bottom.

On May 29, following another difficulty recalculation, the mining difficulty of the first cryptocurrency increased by 1.72%. The index rose to 138.96 T.

Source: CloverPool. Recall that in May, Bitcoin miner stocks rose after Nvidia released its report. The company reported revenue of $81.6 billion for the first fiscal quarter of 2027 — 85% higher than a year earlier.