Bitcoin (BTC) miners are back under pressure as data hints that a new buying opportunity is now here.

Key points:

• Bitcoin miners are in the “capitulation” phase of the current bear market, data suggests.
• A trader argues that there is no “clearer sign” to add BTC exposure as a result.
• Bitcoin miners are now operating on sub-5% margins.

Trader on miner data: No “clearer sign” to buy Bitcoin

In an X post on Thursday, pseudonymous trader Killa warned that miners were “capitulating” based on price versus difficulty.

“You literally have miners capitulating, a signal that has historically marked the perfect time to accumulate,” they wrote. 

“There isn’t a clearer sign to start accumulating $BTC.”

Bitcoin miner capitulation chart. Source: Bitbo

A chart from onchain analytics platform Bitbo shows that the current spot price relative to the last long-term mining difficulty low is punishing miners’ profitability.

This dedicated “miner capitulation” chart is now firmly in the red, repeating a pattern seen in previous Bitcoin bear markets.

In a separate forecast, Killa suggested that Bitcoin’s next bear-market low is still to come.

“Legacy markets likely correct at some point this year and mark the final pivot low for Bitcoin,” they told X followers. 

“This has been the case for every cycle so far, and I see no reason to think this one will be any different.”

BTC/USD vs. S&P 500 chart. Source: Killa/X

Miners reflect “long-term value opportunities”

In X analysis this week, Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, revealed Bitcoin miners are on the edge.

Related: Bitcoin tags $63.2K as BTC price action ignores inflation, Iran Hormuz closure

“Bitcoin is trading back at its Production cost. Miners are now just breaking even on average,” he reported.

An accompanying chart compares the current BTC spot price with both the production and electrical cost. Both are important for miners, as they reflect overall profitability and, in turn, warn of any capitulatory selling.

Capriole currently puts production cost at around $61,200, with electrical cost $48,965. This gives a “miner margin” of 4.67% — near two-year lows seen at the start of June.

Bitcoin miner margin. Source: Capriole Investments

When BTC/USD trends toward these miner breakeven points, it has traditionally signaled an advantageous long-term market entry.

As Edwards notes, the “best Long-term value opportunities have historically been between here and Electrical Cost.”

As Cointelegraph reported, other market metrics paint a more precarious picture for the mining sector, with profits even at record lows.

One argument Bankman-Fried advanced was that the funds he misappropriated were in investments that would eventually grow.

“As the district court recognized, any contention that Bankman-Fried lacked an intent to defraud because he intended to eventually repay his customers was legally misleading and prejudicial because the wire fraud statute encompasses temporary misappropriation of money or property,” the ruling said.

The panel reiterated this argument later on: “Whether the assets purchased by Bankman-Fried appreciated in value is irrelevant as to whether he committed fraud,” the ruling said.

Bankman-Fried’s team tried to argue that FTX was a margin futures trading platform, and therefore customers should have expected that they might lose some access to their funds.

“We are unpersuaded,” the ruling said. “The fact that some FTX customers opted into margin trading, and thus temporary deprivation of their money, is beside the point. Some opted into margin trading, some did not. No one opted into having their money transferred under false pretenses to Alameda.”

The panel’s ruling similarly supported Judge Kaplan’s actions throughout the trial.

The ruling matches the reception Bankman-Fried’s team saw from the panel of judges during the hearing last November, when the three-judge panel repeatedly interrupted and questioned attorney Alexandra Shapiro, who is representing Bankman-Fried.

Polish President Karol Nawrocki vetoed a cryptocurrency regulatory bill for the third time, which sought to implement Europe’s Markets in Crypto Assets Regulation (MiCA) in the country.

Nawrocki said Thursday he supports regulating the cryptocurrency market but argued that the government incorporated only one of 16 key amendments proposed by his office. He said that the text was nearly identical to the previous two drafts he refused.

The third veto of the bill delays Poland’s alignment with the EU-wide regulatory framework just weeks before the end of MiCA’s transitional period on July 1. Following the end of the grace period, crypto asset service providers will be required to hold a MiCA license or stop servicing EU clients.

Poland is currently the only EU member state without a domestic MiCA implementation. Following the July 1 deadline, Poland-based crypto asset service providers without a MiCA license may lose the legal basis to serve EU customers.

Related: MiCA architect says EU should prioritize tokenization over DeFi rules

Polish Prime Minister Donald Tusk slammed the veto in a Thursday X post, writing: “It sounds unbelievable, but the president has vetoed the cryptocurrency bill again. He seems more entangled in it than everyone thought.”

Source: Donald Tusk

Political deadlock deepens over crypto bill

The decision adds to Poland’s political standoff on how the country should oversee crypto assets. It comes nearly two months after Poland’s parliament failed to reverse the second veto issued by President Nawrocki.

Lawmakers fell short of the 263 votes needed to override the veto in an April vote on the bill, which is backed by Tusk’s government and seeks to align Poland with MiCA.

Nawrocki has reportedly defended his opposition by citing concerns about excessive regulation, limited transparency and the potential burden on small businesses.

Government officials warned that delays leave consumers and businesses exposed to fraud and abuse.

The third veto comes as scrutiny of Poland’s crypto sector intensifies. Prosecutors are investigating one of Poland’s largest crypto exchanges, Zondacrypto, for suspected fraud and money laundering involving 2,000 customers with alleged links to Russian organized crime.

Zonda CEO Przemysław Kral has denied accusations of misappropriating funds.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Key Takeaways

• Momentus (MNTS) shares plummeted 18% during premarket hours Friday following disclosure of a $25 million equity raise
• The space company disclosed plans to sell 1,851,852 common shares through a registered direct offering at market price
• Expected gross proceeds total approximately $25 million, prior to deducting placement fees and transaction costs
• Transaction completion is anticipated on or around June 15, 2026
• Funds raised will be allocated toward working capital requirements and general corporate uses

---

Shares of Momentus (MNTS) experienced a significant downturn Friday, sliding 18% before the opening bell after the space technology company disclosed a $25 million registered direct equity offering.

Momentus Inc., MNTS

The California-based orbital services provider revealed it has executed securities purchase agreements with a mix of new institutional backers and current long-term investors to sell 1,851,852 common shares. The transaction is structured as an at-the-market offering in accordance with Nasdaq marketplace regulations.

The company anticipates generating roughly $25 million in gross proceeds from the transaction, with final proceeds reduced by placement agent compensation and associated transaction expenses.

A.G.P./Alliance Global Partners has been tapped as the exclusive placement agent facilitating the transaction.

The deal is scheduled to finalize on or near June 15, 2026, contingent upon satisfaction of standard closing requirements.

According to Momentus, the capital raised will support working capital needs and broader corporate initiatives — a relatively vague designation that provides operational flexibility while leaving investors with limited insight into specific allocation strategies.

Understanding the Market Reaction

Dilutive equity raises typically trigger negative responses in small-capitalization stocks. Issuing additional shares expands the total outstanding share count, which can diminish per-share value for current shareholders.

In Momentus’s case, operating within a capital-demanding space infrastructure sector amplifies investor concerns about dilution. By the time regular trading commenced, shares had declined more than 22%.

The equity sale operates under an active shelf registration statement filed on Form S-3, which received SEC effectiveness on June 4, 2026 — merely days prior to this announcement.

Offering Details

The shares are being distributed via a prospectus supplement scheduled for SEC filing. Interested parties can obtain documentation through A.G.P./Alliance Global Partners at their New York office located at 590 Madison Avenue, 28th Floor, New York, NY 10022.

Momentus provides satellite solutions, orbital transportation services, and space infrastructure capabilities. The company caters to both government agencies and commercial entities across diverse mission profiles including telecommunications, missile defense tracking, and scientific research payloads.

Its service portfolio encompasses hosted payload solutions, orbital servicing and refueling capabilities, in-space manufacturing support, and precision satellite deployment to designated orbits.

The firm competes in a capital-intensive segment of the aerospace industry where operational funding requirements remain substantial and revenue generation often follows extended timelines.

While the offering introduces near-term shareholder dilution, it secures necessary funding to maintain ongoing operations.

As full market trading commenced Friday, MNTS remained down more than 22%, indicating persistent selling momentum triggered by the offering disclosure.

In traditional business, economic moats are the competitive advantages that protect companies from rivals and allow them to sustain profits over long periods. Companies like Amazon, Visa, and Google have built moats through network effects, brand recognition, infrastructure, and economies of scale.

But what about Decentralized Finance (DeFi)?

In an industry where protocols are open-source and competitors can copy features overnight, many wonder whether sustainable moats can even exist. While DeFi operates differently from traditional businesses, certain protocols have demonstrated that economic moats are not only possible—they may become one of the most important factors determining long-term winners.

Understanding what creates economic moats in DeFi can help investors, builders, and users identify which protocols are likely to survive and thrive through multiple market cycles.

Why DeFi Moats Are Different

Unlike traditional companies, DeFi protocols face a unique challenge:

• Code can be copied.
• Features can be replicated.
• Teams can be anonymous.
• Users can switch protocols instantly.

A competitor can fork a protocol’s smart contracts and launch a nearly identical product within days.

This means that technology alone rarely serves as a lasting moat in DeFi.

Instead, successful protocols build advantages that become stronger as adoption grows.

1. Network Effects

Network effects are arguably the strongest moat in DeFi.

A network effect occurs when a product becomes more valuable as more people use it.

Examples include:

• More traders attract more liquidity.
• More liquidity attracts more traders.
• More users attract more developers.
• More developers create more integrations.

This creates a self-reinforcing growth cycle.

Example: Decentralized Exchanges

A decentralized exchange with deep liquidity offers:

• Better pricing
• Lower slippage
• Faster execution

As traders flock to the platform, liquidity providers earn more fees and deposit additional capital.

This makes it increasingly difficult for new competitors to catch up.

The result is a powerful moat built through participation rather than ownership.

2. Liquidity as a Competitive Advantage

Liquidity is one of the most important assets in DeFi.

Protocols with substantial liquidity gain several advantages:

• Better user experience
• Higher trading efficiency
• Greater capital availability
• Stronger market confidence

Liquidity is often sticky.

Large liquidity providers may be reluctant to move capital unless competitors offer significantly better incentives.

This creates barriers to entry for new protocols competing with established players.

In many cases, liquidity itself becomes a moat.

3. Brand and Trust

Trust remains one of the most valuable assets in crypto.

Users are constantly exposed to:

• Smart contract exploits
• Rug pulls
• Governance attacks
• Security vulnerabilities

Protocols that survive multiple market cycles build credibility.

When users trust a protocol’s:

• Security
• Reliability
• Governance
• Transparency

They become less likely to migrate elsewhere.

This is why established DeFi brands often maintain market leadership even when competitors offer higher yields.

Trust compounds over time and becomes increasingly difficult to replicate.

4. Developer Ecosystems

The strongest DeFi protocols are rarely standalone products.

Instead, they become platforms that others build upon.

When developers integrate a protocol into wallets, lending platforms, analytics dashboards, and trading tools, switching costs increase dramatically.

Benefits include:

• More integrations
• Greater utility
• Increased adoption
• Expanded innovation

Every new application built on top of a protocol strengthens its ecosystem moat.

The protocol evolves from a product into infrastructure.

5. Governance Communities

Decentralization introduces a unique source of competitive advantage: community ownership.

Protocols governed by engaged communities can evolve faster and remain aligned with user interests.

Strong governance communities contribute:

• Product improvements
• Risk management
• Treasury growth
• Ecosystem expansion

A highly active community often acts as a decentralized workforce that continuously strengthens the protocol.

This social layer can be extremely difficult for competitors to replicate.

6. Data and Historical Performance

As DeFi matures, historical data becomes increasingly valuable.

Protocols accumulate years of:

• Trading activity
• Risk metrics
• User behavior
• Market performance

This data enables:

• Better pricing models
• More accurate risk management
• Improved lending decisions
• Enhanced user experiences

New entrants lack the extensive datasets needed to achieve similar levels of optimization.

Over time, data can become a significant moat.

7. Cross-Protocol Integrations

Many leading DeFi protocols function as foundational infrastructure for the broader ecosystem.

Their services are integrated into:

• Wallets
• Yield aggregators
• Lending markets
• Derivatives platforms
• Institutional products

The more integrations a protocol has, the harder it becomes to replace.

Removing a deeply embedded protocol may require changes across dozens or even hundreds of connected applications.

This creates powerful ecosystem-level switching costs.

8. Token Economics and Treasury Strength

Well-designed tokenomics can reinforce a protocol’s moat.

Strong treasury reserves allow protocols to:

• Fund development
• Incentivize growth
• Support security audits
• Weather market downturns

Meanwhile, token holders become economically aligned with long-term success.

Protocols with sustainable treasury management often have a significant advantage over competitors dependent on short-term incentives.

Capital resilience becomes a strategic moat during bear markets.

The Weakest Moat: Yield Alone

Many DeFi projects attempt to attract users with extremely high yields.

However, yield is often temporary.

The Future of DeFi Moats

As DeFi evolves, economic moats are becoming increasingly sophisticated.

Future winners may combine:

• Deep liquidity
• Strong network effects
• Robust governance
• Trusted brands
• Extensive integrations
• Valuable datasets
• Sustainable tokenomics

Rather than competing solely on technology, leading protocols will compete on ecosystem strength.

Users frequently move capital toward whichever protocol offers the highest short-term return.

This creates mercenary liquidity rather than loyal communities.

History has repeatedly shown that incentive-driven growth without underlying utility is rarely sustainable.

Yield can attract users, but it rarely keeps them.

The most defensible DeFi businesses may ultimately resemble digital financial infrastructure—critical systems that entire markets depend upon.

Conclusion

Economic moats in DeFi do exist, but they differ significantly from those in traditional industries. Because code can be copied and features can be replicated, sustainable advantages emerge from network effects, liquidity, trust, communities, integrations, and ecosystem development rather than technology alone.

The protocols most likely to dominate the next decade of decentralized finance will not necessarily be those with the newest features. Instead, they will be those that successfully transform themselves into indispensable infrastructure, creating powerful economic moats that become stronger with every new user, developer, and integration.

Ripple CEO Brad Garlinghouse called it “the moment” for the industry, saying the industry deserved “the same rules and protections as every other asset class.”

Standard Chartered projected $4 billion to $8 billion in additional inflows into U.S. spot XRP exchange-traded funds if the bill passes. They have attracted roughly $1.4 billion since January, according to SoSoValue data.

The same discrepancy shows up on the XRP Ledger blockchain. Payment counts, automated market making activity and tokenized real-world assets all hit records this year while the token’s price kept falling. Pilot projects kept stacking up, including one that had Ondo, JPMorgan’s Kinexys, Mastercard and Ripple settling tokenized Treasuries across the ledger in seconds.

Santiment pointed to the same split, with development activity, ledger usage and institutional products advancing as social enthusiasm faded.

The exhaustion has a history. Santiment noted that some of XRP’s strongest rebounds came when the crowd was at its most disinterested, with discussion volume falling and commentary overwhelmingly negative, the same setup as now.

Sentiment readings are a contrarian tool and not a timer, however. The signal indicates that the sellers who talk have mostly stopped talking. Whether that marks a turning point depends on whether the demand that years of waiting were supposed to unlock finally shows up.