As an experienced analyst, I find Ki Young Ju’s insights on the ongoing Bitcoin miner capitulation and its potential impact on the market to be insightful and worth considering. Miner capitulation is a critical factor that can significantly influence the price trend in the cryptocurrency space, as it directly impacts the supply side of the equation.
Ki Young Ju, the founder and CEO of cryptocurrency analysis company CryptoQuant, has expressed that the Bitcoin mining sector’s surrender is not yet complete.
Based on historical analysis, I’ve found that capitulation phases in the market usually come to an end when the daily average mined value reaches approximately 40% of the yearly average. Presently, we’re observing a daily average of 72%, which is quite higher than the typical threshold.
When cryptocurrency miners experience significant financial hardship due to decreased profits, this is referred to as a miner crisis. In this scenario, miners are compelled to sell their Bitcoin holdings as prices and fees drop, exacerbating the downward trend in the market. Despite the focus on Mt. Gox’s repayments and Germany’s selling spree, the plight of miners is another significant contributor to the bearish sentiment.
The mining hashrate has dropped to 552 EH/s from its previous high of 657 EH/s as per Blockchain.com’s data, signaling that numerous miners are presently shutting down their machinery.
As a researcher studying cryptocurrency market trends, I’ve observed that noticeable decreases in hashrate, as reported by CryptoQuant last week, have historically indicated potential bottoming points for the market.
A “boring” market
Ju predicts a lackluster price trend in the coming months, yet he advises investors to maintain optimistic outlooks for the future and minimize potential hazards in their investments.
Based on the information from CryptoQuant that I’ve analyzed, the cryptocurrency is presently being traded at a price of $59,064. It reached a peak of $59,322 prior to this.
Last week, Bitcoin dipped below the $54,000 mark, marking a significant decrease for the largest cryptocurrency. Yet, the bullish forces have rallied since then, thanks to substantial investments in Bitcoin exchange-traded funds (ETFs). On July 9 alone, these financial products attracted approximately $216.4 million in new inflows.
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2024-07-10 09:28