CryptoQuant warns of imminent miner capitulation if Bitcoin fails to make a substantial recovery
As the summer season approaches, CryptoQuant is raising concerns about potential challenges that Bitcoin miners may face in the coming months, especially if prices fail to see a significant recovery. Despite the recent dip in Bitcoin’s price below $58,000, leading to weaker investors selling off their holdings, there has yet to be a major capitulation among Bitcoin miners. Julio Moreno, the head of research at CryptoQuant, stated in an interview with crypto.news that the network hashrate remains slightly higher than pre-halving levels. He also noted that miners with relatively efficient equipment can still make a profit, as seen in the break-even electricity price for ASIC models S19 and S21. However, Moreno pointed out that retail miners, particularly those using older ASICs like S17 and S19, may be experiencing negative profits due to higher electricity costs. The occurrence of a capitulation event will depend on how the network hashrate and prices evolve in the next few weeks. Addressing concerns about potential price volatility during the summer trading slowdown, Moreno emphasized that miners typically respond to price movements rather than the other way around. However, he did not rule out the possibility of more selling pressure on Bitcoin in the coming months. Despite the drop in revenue caused by the recent halving, Bitcoin miners are not selling their crypto holdings at current prices. According to CryptoQuant CEO Ki Young Ju, miners now have two options: capitulate or wait for a rise in Bitcoin’s price, which is currently trading below $58,000. Kaiko, a data provider, has stated that Bitcoin’s halving is unlikely to affect its price in the next 18 months.
