Question #609 ·
What insights do on-chain metrics like the Hash Ribbon provide about miner behavior and supply pressure in the Bitcoin network?
- Hash Ribbon signals exclusively when retail investors start buying small amounts of Bitcoin during every price dip period
- Hash Ribbon measures only historical network transaction fees and cannot give any effective insight into miner selling behavior
- Hash Ribbon shows periods of miner capitulation when hash rate dips and miners sell reserves increasing supply pressure Right answer
Why is this the correct answer?
This is correct because the Hash Ribbon metric measures changes in the Bitcoin network’s mining hash rate to detect when miners shut off their machines (capitulation) and sell coins, which increases supply pressure on the market. Beginners should know that on-chain data can reveal miner behavior and potential price impacts.