With the price of Bitcoin (CRYPTO: BTC) falling and the price of energy increasing, Bitcoin miners have had a difficult time making money in 2022. With margins getting squeezed hard, some are now shutting down operations entirely in a process known as Bitcoin miner capitulation. The most obvious sign yet of Bitcoin miner capitulation is the filing of Chapter 11 bankruptcy by Core Scientific (NASDAQ: CORZ) on Dec. 21.
There are two different schools of thought on what Bitcoin miner capitulation means for the future price of Bitcoin . There is both a bearish scenario and a bullish scenario.
The bearish case -- Bitcoin miners going out of business is bad for the price of Bitcoin -- is easy to make. Most obviously, any failure of Bitcoin mining contributes to the overall bearish sentiment in the market for Bitcoin. Wall Street investment banks will no longer recommend Bitcoin mining stocks as contrarian plays, and they will no longer recommend Bitcoin. Everything related to Bitcoin starts to look like a "sell."
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What Does Bitcoin Miner Capitulation Mean for the Price of Bitcoin?