Bitcoin
Miner capitulation looms if Bitcoin fails to recover significantly, says CryptoQuant
As summer approaches, CryptoQuant warns that Bitcoin miners could face significant challenges ahead, especially if prices fail to recover substantially during the hottest month.
Despite BitcoinWith the price falling below the $58,000 mark and prompting weaker investors to sell at current levels, the major capitulation among Bitcoin miners has not yet begun. CriptoQuant Head of research Julio Moreno said in an interview with crypto.news that the network’s hashrate remains slightly higher than pre-halving levels, noting that miners “can still make a profit” with “relatively efficient equipment.”
Moreno says that profitability can still be seen in the break-even electricity price for the ASIC S19 and S21 models, which remain above the electricity cost of large industrial mining companies (green area).
ASIC electricity breakeven price | Source: CryptoQuant
However, he also noted that some retail miners, especially those using older ASICs like the S17 and S19, may be seeing negative profits “due to higher electricity costs,” adding that a capitulation event “will depend on how the network hashrate and prices evolve over the next few weeks.”
Responding to concerns about potential price volatility during the summer trading slowdown, Moreno emphasized that miners typically respond to price movements and not the other way around. However, he did not rule out the possibility that Bitcoin could come under more selling pressure in the coming months.
“[The market is] A capitulation by the mining company is more likely if prices do not recover significantly over the summer. Especially with the hash price (average miner revenue per hash) hitting new lows.”
Julio Moreno
Like crypto.news reported Previously, Bitcoin miners are not selling their crypto holdings at current prices, although their revenues have fallen to levels last seen in early 2023 due to the recent halving, which reduced fixed block rewards from 6.25 BTC to 3,125 BTC. According to CryptoQuant CEO Ki Young Ju, miners now have two options: capitulate or wait for a rise in the price of Bitcoin, which is currently trading below the $58,000 mark.