Bitcoin Hash Price Hits All-Time Low, What’s Next for BTC Price?
Following the Bitcoin halving in April, the capitulation of Bitcoin miners continues to be the most-watched event. According to on-chain data, the Bitcoin hash price has reached an all-time low as many miners reportedly shut down their rigs as they were unable to cope with the rising costs and falling rewards.
Bitcoin Hash Price Hits All-Time Low
In a recent update, CryptoQuant CEO Ki Young Ju mentioned that the Bitcoin hash rate has reached an all-time low. This has led many mining companies to slow down their investments in mining rigs. Therefore, as a hedge against the uncertainty in the current bitcoin market, miners have started looking into other Proof-of-Work (PoW) cryptocurrencies.
As reported by parofix, top market players like Marathon Digital have already started mining PoW currencies like kaspa.
Ju also added that miners’ current shift does not signal the end of the current cycle. He also noted that Bitcoin mining companies are not showing a long-term bearish trend on Bitcoin, but are simply hedging and waiting for buy-side liquidity to recover.
It will be interesting to see how long BTC miners will continue to capitulate. According to QCP Capital, $58,000-$60,000 has proven to be a strong support level for Bitcoin throughout the second quarter. But the market, in addition to governments’ sales, also includes Mt. Gox continues to face further selling pressure due to the launch of Bitcoin.
Also read: US and German Governments’ Bitcoin Sale Not a Cause for Concern
QCP Capital believes that Bitcoin price will decline further towards $50,000, where it has found strong support. At this price point, interest from traditional financial institutions may increase.
Miners’ Capitulation at 18-Month Low
CryptoQuant observed that Bitcoin miners are currently experiencing a significant decline in profitability, similar to the severe decline witnessed in December 2022. During this period, miners faced a 7.6% decline in earnings, coinciding with the lowest point of the subsequent market cycle. FTX crashed.
Also Read: Bitcoin Miner CleanSpark to Acquire GRIID for $155 Million
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Bhushan is a FinTech enthusiast and has a good grasp of financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is a constant learner and motivates himself by sharing the knowledge he acquires. In his spare time, he reads thrillers and sometimes explores his culinary skills.
The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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