As a seasoned crypto investor with a keen interest in market trends and miner sentiment, I find Ki Young Ju’s insights on Bitcoin miner capitulation particularly intriguing. Miner capitulation is an essential factor that can significantly impact the overall cryptocurrency market. When miners are struggling to make ends meet due to declining profitability, they are forced to sell their Bitcoin reserves, which in turn puts downward pressure on prices.
Ki Young Ju, the founder and CEO of cryptocurrency analysis company CryptoQuant, expressed that the Bitcoin mining sector’s surrender hasn’t been completely resolved yet.
Looking at historical trends, the ending point for capitulation phases is usually reached when the daily average cryptocurrency production is approximately 40% of the annual average. At present, however, this figure amounts to 72%.
When cryptocurrency miners experience significant financial hardship due to decreasing profits, this is referred to as a miner crisis. In response to this adversity, miners are compelled to sell their Bitcoin holdings because of falling prices and fees. Although the media focuses on Mt. Gox’s reimbursements and Germany’s selling spree, the plight of miners is an equally significant bearish influence.
The hashrate dropped to 552 EH/s from its previous high of 657 EH/s on Blockchain.com’s data, suggesting many miners are currently turning off their mining equipment.
As a crypto market analyst, I’ve observed that significant decreases in hashrates have historically indicated bottoming conditions for the market based on data from CryptoQuant.
A “boring” market
I, Ju, hold the perspective that the market’s price movements may appear uneventful during the upcoming period. However, I strongly advise investors to maintain a bullish stance for the long run, while being cautious about taking on undue risks.
Based on information from CryptoQuant, the cryptocurrency’s current price is $59,064 following a high of $59,322 reached on this past Wednesday.
Earlier this month, Ju stated that a “boring” Bitcoin was a buying opportunity.
Last week, Bitcoin, the largest cryptocurrency, dropped below the $54,000 mark. Yet, bullish forces have bounced back thanks to substantial investments in Bitcoin exchange-traded funds (ETFs). Notably, these ETFs attracted approximately $216.4 million in new inflows on July 9.
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2024-07-10 09:45