Bitcoin is set for significant growth as a well-known on-chain metric suggests the bull run is about to resume. In an update on June 4, Capriole Investments, a quantitative Bitcoin and digital asset fund, shared promising signals from the Hash Ribbons metric.
Capriole’s founder, Charles Edwards, announced, “Hash Ribbons is back.” Bitcoin miners have had to adapt following the block subsidy halving in April. This change is evidenced by the hash rate, which measures the total processing power miners dedicate to the network. After peaking in March, the hash rate has decreased and is now stabilizing at a lower level.
According to Edwards, this adjustment is typical as miners adapt to new economic conditions. This has led to Bitcoin’s Hash Ribbons entering a new “capitulation” phase, a traditional but often debated buy signal for BTC. Edwards explained, “Hash Ribbons is now tempting us with the current Miner Capitulation which started two weeks ago.”
The Hash Ribbons metric assesses the 60-day moving average of the hash rate against its 30-day counterpart. When the 30-day moving average falls below the 60-day average, it signals a slowdown. Edwards pointed out that miner capitulation often aligns with miners shutting down operations, going bankrupt, or being taken over. Such events frequently coincide with Bitcoin Halvings.
Edwards further elaborated that Bitcoin Halvings render old, inefficient mining equipment obsolete, as the costs of running these rigs exceed the revenue generated from block rewards. Consequently, these outdated machines are phased out over several weeks post-halving, causing a decline in hash rates, which is currently being observed.
Capriole also noted the correlation between Hash Ribbons downturns and broader BTC price corrections. Historically, these periods of weakness are followed by extended bullish trends. The previous capitulation event occurred in August 2023 when BTC/USD was around $25,000.
Edwards acknowledged that Hash Ribbons signals are often polarizing. Each occurrence sparks debate about their current relevance or why the latest signal might be different. This skepticism also arose in 2023, yet BTC was trading in the $20,000 range when the last Hash Ribbon buy signal emerged, indicating that this metric remains a powerful predictive tool.
Various other on-chain indicators are also pointing to rare bull signals, even after nearly three months of BTC price consolidation. Some analysts see this as a classic “reaccumulation phase” following the halving, which historically leads to price increases.
Geopolitical and macroeconomic conditions are also favorable for cryptocurrency, according to Edwards. He concluded, “This update shows a remarkable confluence of technical and fundamental factors suggesting Bitcoin is poised for significant gains. Although the summer months usually see a financial lull, the data we have indicates that an upward move could happen even sooner.”
Hash Ribbons is back, baby! 🚀 Time to buckle up and enjoy the ride to the moon! 🌕
Great read! The combination of technical and macro factors looks incredibly promising for Bitcoin.
Beware! These “bull signals” often seem to lure in investors just before the next big drop. Stay cautious.
This is getting repetitive. Every expert has another reason why this time will be different. Enough with the hype!
Always trust the Hash Ribbons! This is the kind of news I love waking up to. 🌄📈
Feeling more confident than ever about Bitcoin’s trajectory. Thanks to Capriole for the great update!
Who else is excited about the upcoming bull run?! Hash Ribbons FTW!
It seems like theyre just looking for ways to keep people excited about Bitcoin. This news doesn’t change my bearish outlook.
Looks like all the pieces are falling into place for Bitcoin to soar! Thank you, Capriole, for the detailed breakdown.
This is the type of analysis that keeps me optimistic. Bitcoin’s future is looking bright!
I’ve been waiting for this! The Hash Ribbons metric is like the ultimate cheat code for BTC investing.
I’m tired of these predictions that never pan out. It feels like we’re being constantly misled.
Great, another “promising signal” that we’ll probably regret trusting. When will this cycle end?
Capriole’s analysis is spot on! If history repeats itself, we’re in for a fantastic bull run.
This gives me so much hope! Hash Ribbons have proven themselves time and again. Let’s go BTC! 💥📷
Hash Ribbons and other on-chain metrics showing positive signs—I’m all in! 🏦 BTC to the moon! 🌝
If Bitcoin grows, its in spite of these so-called metrics. This seems like just another marketing tactic.
This is exciting news! Bitcoin is looking strong and ready to make a big move!
Hash Ribbons, Capitulations… it all sounds like jargon to distract from the actual volatility and risks involved.
Reading this just boosted my confidence in BTC even more! Great work, Capriole and Charles Edwards!
Feeling super positive about Bitcoin’s future with this new data! Time to HODL tight!
The “Hash Ribbons” logic seems highly speculative. This just looks like another way to create false hype around Bitcoin.
Bitcoin miners adapting post-halving is always a good sign. Excited to see where this takes us! 🚀🔗