The Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) Hash Ribbons indicator, a metric that uses 30-day and 60-day moving averages to measure difficulty and financial challenges for miners, has signaled the potential end of miner capitulation, according to data from CryptoQuant.
When the 30-day moving average of the indicator crosses over the 60-day moving average, this signals an end to miner capitulation, as miners shift to more efficient mining equipment and re-enter the market.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/d4839838-8d97-4973-a77f-532cbdb6264c.jpeg" alt="Hash Ribbons signal end of miner capitulation: CryptoQuant" title="">
 <figcaption style="text-align: center;">
 The Bitcoin Hash Ribbons indicator 2020-2024. Source: <a href="https://x.com/cryptoquant_com/status/1825610937044447708" target="_blank" rel="noopener nofollow">CryptoQuant</a>
 </figcaption>
</figure>
This often coincides with price bottoms for the scarce digital asset, according to the analytics firm, and offers an opportunity for investors to enter the market at a more advantageous price by carefully timing their entrance and buying the dip.
<h2 id="mining-difficulty-reaches-new-all-time-high">Mining difficulty reaches new all-time high</h2>
On Aug. 1, the Bitcoin mining difficulty, a measure of the computational power required to successfully mine a single Bitcoin, reached a new&nbsp;<a href="https://cointelegraph.com/news/bitcoin-network-difficulty-increase-aug-2024">all-time high</a>, hitting 90.66 trillion. Since then, the difficulty has adjusted down to 86.8 trillion—a slight improvement but still much higher than historic difficulty levels.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/0850c368-9230-4b11-aba4-74c4974a4a37.png" alt="Hash Ribbons signal end of miner capitulation: CryptoQuant" title="">
 <figcaption style="text-align: center;">
 Bitcoin mining difficulty. Source: CryptoQuant
 </figcaption>
</figure>
Related:&nbsp;<a href="https://cointelegraph.com/news/bitcoin-mining-firms-artificial-intelligence-ai-hpc-revenue-boost">Bitcoin miners may gain $13.9B yearly from 20% shift to AI and HPC — VanEck</a>
As expected, this increased difficulty eroded miner profit margins, causing the miner hashprice, a metric that measures miner profitability, to fall to&nbsp;<a href="https://cointelegraph.com/news/miner-profitability-falls-to-record-lows-blocksbridge">record lows</a> of under $36 petahashes per second (PH/s). Miner hashprice later rebounded to around $40 PH/s but even this level is dangerously close to historic lows.
<h3 id="bitcoin-miners-diversify-into-other-forms-of-high-powered-computing-services">Bitcoin miners diversify into other forms of high-powered computing services</h3>
The slow erosion of miner profit margins due to both increased computational power and a decreased block reward subsidy post-halving is driving miners to convert a portion of their mining operations to artificial intelligence and high-powered computing services.
In July, Bitcoin mining company TeraWulf announced it was&nbsp;<a href="https://cointelegraph.com/news/terawulf-q2-earnings-bitcoin-mining-slides-plans-ai-expansion">diversifying operations</a> into high-performance computing and AI data centers through the construction of a new facility at the company's Lake Mariner site, allocating 2 megawatts of power for the company's initial foray into data center services.
Magazine:<a href="https://cointelegraph.com/magazine/bitcoin-price-ethereum-etf-thomas-fahrer/">Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame</a>

Hash Ribbons signal end of miner capitulation: CryptoQuant

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