Miner Capitulation
When unprofitable miners shut down and sell reserves en masse — historically a marker of deep cycle lows.
Miner capitulation occurs when a falling price pushes mining below profitability for many operators, forcing them to switch off machines and sell accumulated coin reserves to cover costs or exit. It shows up as falling hash rate, downward difficulty adjustments, and depressed Puell Multiple readings.
Historically, periods of miner capitulation have clustered near cycle bottoms — the forced selling exhausts a persistent source of supply, and survivors emerge leaner. It’s not a precise timing tool, and ETF-era flows have diluted miners’ market impact, but the concept remains a recognizable feature of bear-market lows and a data point in on-chain bottom-hunting.