Bitcoin Dives Below $8K, but We Are ‘A Long Long Way From Miner Capitulation’

Siamak Masnavi

According to data from CryptoCompare, on Thursday (November 21), between 08:30 UTC and 08:40 UTC, the price of Bitcoin (BTC) fell below $8,000 for the first time since October 25:

BTC-USD One Month Chart on 21 Nov 2019.png

The Bitcoin price kept falling, and by 10:11 UTC, it had reached $7,916, meaning that (at the time of writing) Bitcoin is down 2.11% in the past 24-hour period:

BTC-USD - 24 HOUR CC CHART - 21 NOV 2019.png

That was the bad news.

The good news is that prominent macro economist and crypto analyst/trader Alex Krüger believes that, despite what you may have heard, "the market is a long long way from miner capitulation."

In a post on Twitter around 16:51 UTC yesterday (November 20), Krüger explained that although miner capitulation could happen "eventually" we are nowhere near that point since the Bitcoin hash rate has only dropped 4% recently:

Yesterday, John Pfeffer, Founder of Pfeffer Capital, Travis Kling, Founder and CIO of Ikigai Asset Management, and Charles McGarraugh, Head of Markets for Blockchain discussed the outlook for Bitcoin with Bloomberg's Alastair Marsh at The Future of Digital Assets briefing in London.

Marsh started the discussion by asking the panel if they agreed with the idea that in the current macroeconomic environment the narrative of Bitcoin as a macro hedge is especially strong. 

McGarraugh stated:

"Yeah, I totally buy into that idea.I think that it's a great idea... Bitcoin is awesome because your property rights are an operational fact of possessing the private key rather than the jurisdictional artifact of recourse to a legal system that may or may not re-trade you at some future date."

Update at 11:36 UTC on November 21:

Around 11:21 UTC, Alex Krüger took to Twitter again, this time to explain under what scenario he could envision miner capitulation in the medium term:

 

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