Will a Low in Difficulty Mark the Bottom Once Again?

Capitulation resulted in the biggest drop in difficulty in over a year

Initially miners responded very mildly to the drop in BTC price of a month ago. Unfortunately, many were not able to sustain the record low margins and started turning off their machines over the last two weeks. This caused a drop in network hashrate which in turn triggered a miner capitulation. This doom scenario led to a significant drop in difficulty…