Analysis: If short-term miners surrender, the market will often recover within 6 months to 1 year

Cointelegraph analysis of today's article stated that when the mining industry is no longer profitable, there will be miners surrender in the Bitcoin market. As profitability declines, miners will naturally sell their bitcoins as a response to deteriorating market sentiment, which will put huge selling pressure on the market and make it difficult for major cryptocurrencies such as bitcoin to maintain growth . Large mining centers and companies are unlikely to surrender due to short-term price declines, as they hold long-term contracts with power suppliers and have more capital to deal with market instability for a long time. At the same time, smaller mining companies may experience short-term capitulation. The failure of major mining companies one after another may lead to a death spiral, that is, the hashrate of the Bitcoin network continues to decline, constantly close to zero. However, as Bitcoin security expert Andreas Antonpoulos previously stated, it is unlikely that the Bitcoin network will experience a death spiral or a sudden drop in hash rate to near zero levels, as miners have long-term vision and strategy. Therefore, when short-term miners surrender-similar to the end of 2018-the market tends to recover within 6 months to 1 year. It is too early to predict whether miners will surrender before the end of the year. However, if the negative sentiment surrounding the market continues into the first quarter of 2020, a sell-off similar to December 2018 may occur in the coming months.