Right now, if bitcoin price rise up suddenly to 20k, a huge flood of mining equipment orders will flood the asic manufacturers. In 3 weeks to 2 months, a ton of asics arrive and mining goes back to this bad profitability or close to it. Only bitcoin holders win. Thats the problem with overcapacity.
The problem with that concept is that there is NO OVERCAPACITY in Bitcoin mining gear - total network hashrate STILL has not caught up with the price rise from the lows back when it was pushing $200 AND WAS PROFITABLE AT THE TIME if you had low-enough cost electric.
They're still selling every miner they can get out the door, as they can't get enough CHIPS due to lack of FOUNDRY CAPACITY available.
I suspect that's the primary reason eBang moved to Samsung (and it's why Nvidia put the 1050/1050ti on Samsung) - TSMC and GF can't keep up with demand while Samsung had SOME slack (which has largely gotten eaten now, though not entirely).