As a seasoned crypto investor with a few years under my belt, I’ve seen my fair share of market ups and downs. The recent analysis by CryptoQuant CEO Ki Young Ju about Bitcoin miners and their potential capitulation following the halving event in April has caught my attention.
As a Bitcoin analyst, I’ve been observing the mining landscape closely and have yet to detect any clear indications of capitulation among Bitcoin miners, despite their revenues reaching 14-month lows post-April’s halving event.
either give up (capitulate) or wait for an increase in Bitcoin’s price to recoup their expenses.
“Now they have two options: 1. Capitulation, or 2. Waiting for a rise in BTC price.”
According to Ju’s analysis of the Puell Multiple chart, which gauges miner selling pressure over a 365-day period, there is currently no indication of miner capitulation as of now.
Ju’s analysis comes as a recent crypto price dip has sparked concerns about miner capitulation.
After the Bitcoin halving on April 20, the income of miners experienced a significant surge. Demand for mining capacities on the initial blocks post-halving was exceptionally high among niche groups such as satoshi hunters and Runes Protocol enthusiasts, leading them to pay premium prices.
As a crypto investor, I’ve noticed a decrease in demand for Bitcoin-linked assets lately. This trend can be attributed to the overall slump in prices across the crypto market, which has left many investors feeling uncertain and hesitant.
As a researcher at The Bitcoin Layer, I reported in a blog post on April 30th, that miners experienced a momentary relief following the Bitcoin halving due to the price increase. However, their profits are currently under significant pressure since the Bitcoin spot price is no longer favorable for them.
The risk of miners giving up or selling their bitcoins due to losses is increasing as profits become scarce. If Bitcoin’s price keeps declining over the next few days and extends into a prolonged downturn, large-scale miners may be forced to sell a significant amount of their cryptocurrency holdings in order to cover their expenses.
Significantly, the estimated price for Bitcoin’s hashpower – calculating the anticipated value of processing one trillion hashes daily – has reached a record low of $46.55, marking a 74% decrease from its previous high post-halving, according to Hashrate index statistics.
According to TradingView’s latest information, the value of a Bitcoin is now around $60,400, representing an 18% decrease from its peak price of $73,700 recorded on March 14.
Just like Ethereum‘s second position among cryptocurrencies, Ether (ETH) has experienced a significant decline as well. Its peak price this year reached $4,070 on March 12th, and since then it has dropped by approximately 26%.
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2024-05-01 05:07