Odaily reported that Galaxy Research posted on X that Bitcoin miners have entered a “capitulation phase.” The firm linked its view to the current change in Bitcoin mining difficulty, stating that the network’s mining difficulty has fallen by more than 20% from its all-time high.
Largest difficulty pullback since 2021
According to Galaxy Research, the current decline marks the largest Bitcoin mining difficulty retracement since 2021. Mining difficulty reflects the computational threshold miners face when competing for block rewards, and a downward adjustment shows that the network is adapting to changes in hash rate.
Galaxy Research said a sharp fall in mining difficulty typically indicates that some miners have left the network under profitability pressure. As that hash rate exits, the Bitcoin network is going through a hash-rate adjustment phase, which is the basis for the firm’s description of miners entering a “capitulation phase.”