Historic mining capitulation nears end, pointing to bitcoin price stabilization
CoinDesk
by James Van StratenFebruary 25, 2026
AI-Generated Deep Dive Summary
Bitcoin's prolonged mining capitulation appears to be nearing its end, with signs suggesting that the cryptocurrency may have hit a price bottom. The Hash Ribbon indicator, which tracks miner stress and network health, is showing recovery signals after one of the longest capitulation periods on record. This metric, based on 30-day and 60-day hash rate moving averages, has historically indicated Bitcoin's local or major price bottoms. Since late November, when the metric first inverted, Bitcoin's price fell from around $90,000 to a low near $60,000 before rebounding to roughly $65,000.
The mining capitulation occurs when miners' revenue drops below their operating costs, forcing less efficient operators to shut down operations and sell Bitcoin reserves to cover expenses like electricity and debt. This process reduces the network's hash rate and creates sustained selling pressure on the market. However, the recent rebound in hash rates signals renewed miner confidence and easing network stress. Additionally, Bitcoin is now trading below its estimated average production cost of $66,000, a level often associated with undervaluation. Similar conditions were observed in November 2022 when Bitcoin bottomed
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Originally published on CoinDesk on 2/25/2026