Bitcoin miners not showing signs of capitulation, says CryptoQuant CEO

Bitcoin miners are choosing to hold onto their cryptocurrency holdings despite a drop in revenue to levels last seen in early 2023, according to CryptoQuant. The decrease in revenue is a result of the recent halving, which reduced the fixed block rewards from 6.25 BTC to 3.125 BTC. In a post on April 30, CryptoQuant CEO Ki Young Ju explained that miners now have two options: either give up or wait for a rise in Bitcoin’s price, which is currently trading at around $63,000. Ju added that there are currently no signs of capitulation.

In a research report, analysts at Coinbase Research noted that following the halving, the coordinated release of Runes on Bitcoin resulted in an all-time high of $81 million spent on transaction fees in one day. The analysts suggest that the increase in variable transaction fees, along with the BTC rally during the first quarter, could support the continued growth of the network hash rate, indicating that miners may find it profitable to continue participating in BTC mining at current price levels.

Bitcoin underwent its fourth halving on April 20 after the 840,000th block was mined. The halving event occurs every 210,000 blocks and reduces the block reward by half each time. This event is considered significant as it affects the supply of new Bitcoins entering circulation. Historically, Bitcoin’s price has seen significant movements around halving events, with some investors expecting a price increase due to the reduction in supply. However, the latest halving occurred in a different context, as Bitcoin reached a new all-time high even before the event took place. This has led some to argue that the landscape has evolved compared to previous cycles.

Hut 8 CEO predicts a decline in Bitcoin mining bankruptcies as the industry undergoes a scale shift.