How Does the Concept of “Miner Capitulation” Relate to a Prolonged Price Drop?

Miner capitulation occurs when a sustained drop in a coin's price makes mining unprofitable for a significant portion of the network's miners. These miners are forced to shut down their operations, sell their equipment, or switch to mining a more profitable coin.

This leads to a sharp drop in the network's total hashrate, which is a key indicator of capitulation. This event often marks a potential market bottom, as the remaining, more efficient miners can continue operating, and the network's security eventually stabilizes.