PANews reported on February 25th that, according to CoinDesk, Glassnode data shows that the hashrate indicator is nearing the end of a three-month miner capitulation period, one of the longest in history. A recovery signal will be triggered when the 30-day moving average of the hashrate rises above the 60-day moving average, indicating that miners are returning to online activity and network pressure is easing. Since the indicator first reversed last November, Bitcoin has fallen from around $90,000 to a low of $60,000 in early February, and is currently recovering to around $65,000.

The hashrate metric compares the 30-day and 60-day moving averages of hashrate. Miner capitulation occurs when mining revenue falls below operating costs, leading to inefficient mines shutting down and selling off their Bitcoin reserves, causing a decrease in hashrate and increasing market selling pressure. Historically, such capitulations have often coincided with local or major bottoms, including January 2015, December 2018, and December 2022. Currently, Bitcoin is trading below the estimated average production cost of $66,000. The last time this occurred was in November 2022, when Bitcoin bottomed out around $15,500.