Miner Capitulation Is Putting Pressure On The Bitcoin Price
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For those that are unfamiliar with how hashrate is calculated: the Bitcoin network targets ten minute block times, and has a difficulty adjustment every 2,016 blocks (about every two weeks). If over a 2,016 block period, blocks are coming in at 5% faster rate than the 10 minute average target, then difficulty will adjust upwards, and vice versa.
Thus, when the hash rate is dropping, it means that blocks are coming in slower than the 10 minute target, which means that miners have turned off their operations (for any number of reasons).
The hash rate of the Bitcoin network has declined by approximately 27% since May 15, as a confluence of a mining ban in provinces in China as well as a large decrease in the price of bitcoin has led to many operations temporarily turning off their machines.
