Galaxy Research Says Bitcoin Miner Capitulation Has Begun as Mining Difficulty Drops More Than 20% From Peak

Bitcoin miners have entered a capitulation phase as worsening profitability pushes some operators off the network, Galaxy Research said.

Crypto-focused media outlet Odaily reported on June 21 that Galaxy Research wrote in a post on X, formerly Twitter, that "Bitcoin miners have entered the capitulation stage."

Galaxy Research said Bitcoin mining difficulty has fallen more than 20% from its all-time high. It described the move as the largest difficulty adjustment since 2021.

Lower mining difficulty indicates that competition among miners on the network has eased. As profitability deteriorates, some miners are no longer able to cover electricity and operating costs and shut down equipment. The network then adjusts mining difficulty to match the lower hash rate.

Galaxy Research said the latest drop in difficulty shows that some miners are leaving the network under profit pressure, with the market now in a hash-rate rebalancing phase.

Market participants view miner capitulation as a sign of weaker Bitcoin network profitability and potential selling pressure in the short term. After higher-cost miners are forced out, however, it could also help improve the mining cost structure.