Easy On Chain2026-02-04

Miner Capitulation in Progress: Is the Bottom Near?

The recent market correction has pushed Bitcoin miners into a state of heavy financial stress. Data suggests we are currently witnessing "Miner Capitulation," a phase that historically signals the formation of a local bottom. 1. Miners are "Extremely Underpaid" The 'Miner Profit/Loss Sustainability' indicator has dropped to -30. This means miners’ daily revenue (USD) has plummeted by approximately 30% compared to just 30 days ago. As seen in the chart, the metric has entered the deep blue "Extremely Underpaid" zone. Additionally, the Puell Multiple has retreated to 0.69. These low levels indicate that mining profitability has deteriorated significantly, forcing inefficient miners to reach their breaking point. 2. Signs of Forced Selling Pain leads to action. We are observing a reaction in the 'Miner Position Index (MPI)' and 'Exchange-Miner Mean Inflow,' both of which have shown sharp spikes recently. The surge in mean inflow, rather than just total volume, suggests that large entities (mining whales) are moving significant chunks of BTC to exchanges. This confirms that miners are offloading inventory to cover operational costs (electricity/hardware) or to hedge against further downside. While miner selling creates short-term price volatility, it is often a necessary process to clear "weak hands" before a reversal. We are in the middle of a capitulation event. Historically, when the Sustainability metric hits the "Extremely Underpaid" zone and the selling pressure (MPI) begins to cool down, it marks a cyclical bottom. The current zone represents a high-potential area for accumulation.