As a researcher with extensive experience in the cryptocurrency market, I’ve closely observed the recent Bitcoin miner capitulation following the halving event in April. The on-chain data indicating an all-time low Bitcoin hash price and several miners turning off rigs due to rising costs and dropping rewards is concerning.
As a researcher studying the Bitcoin market, I can tell you that the Bitcoin miner capitulation following the halving event in April is a significant observation. According to on-chain data, the Bitcoin hash price has recently reached an all-time low. This indicates that many miners have reportedly shut down their rigs due to the increasing costs and decreasing rewards.
Bitcoin Hash Price At All-time Low
Recently, CryptoQuant CEO Ki Young Ju announced that the Bitcoin hash rate has hit a record low in an update. Consequently, numerous mining firms have scaled back their investments in new mining equipment. Amidst the unpredictability of the current Bitcoin market, miners are now exploring alternative Proof-of-Work (PoW) cryptocurrencies as a protective measure.
The price for hashing a Bitcoin transaction reached a record low. Consequently, numerous mining businesses scaled back their investments in new equipment, while others shifted their focus towards mining alternative Proof of Work (PoW) coins as a precautionary measure amidst market instability.
— Ki Young Ju (@ki_young_ju) June 28, 2024
According to CoinGape’s report, leading cryptocurrency miners such as Marathon Digital are shifting their focus towards proof-of-work (PoW) coins like Kaspa.
As a crypto investor, I’d like to share my perspective on Ju’s recent comments regarding the ongoing shift among Bitcoin miners. Contrary to any alarming implications, Ju emphasized that this transition does not necessarily mark the demise of the current Bitcoin cycle. Furthermore, Bitcoin mining companies, in my experience, aren’t fundamentally bearish towards Bitcoin. Instead, they are employing a cautious strategy and biding their time for the buy-side liquidity to regain strength.
It’s intriguing to ponder how long BTC miners will persist in their capitulation, given that $58,000-$60,000 has emerged as a resilient support level for Bitcoin during the second quarter, according to QCP Capital. Nevertheless, downward pressure on the market persists due to ongoing selling from governments and the release of Bitcoin by Mt. Gox.
According to QCP Capital’s perspective, the value of Bitcoin is expected to decrease and potentially reach around $50,000. At this level, conventional financial organizations may start displaying increased enthusiasm.
Miner Capitulation at 18-Month Low
As a crypto market analyst, I’ve noticed that Bitcoin miners are currently experiencing a substantial decrease in profitability, reminiscent of the severe dip we saw in December 2022. During that time, miners grappled with a 7.6% decline in earnings – hitting rock bottom after the FTX collapse marked the lowest point in the market cycle.
#Bitcoin miner capitulation has reached levels comparable to December 2022: 7.6% drawdown.
December 2022 marked the cycle bottom after the FTX colapse.
— Julio Moreno (@jjcmoreno) June 28, 2024
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2024-06-29 09:46