With Bitcoin hash price at an all-time low, miner capitulation reflects December 2022’s profitability fall. BTC may lose the $60,000 support.
Following the Bitcoin halving event in April, the Bitcoin miner capitulation remains the most closely watched event.
Based on the on-chain data, the Bitcoin hash price has reached its all-time low as several miners have reportedly shut off their rigs due to the increasing costs and decreasing rewards.
Bitcoin Hash Price At All-time Low
CryptoQuant CEO Ki Young Ju recently disclosed that the Bitcoin hash price has reached an all-time low in a recent update.
This has caused numerous mining companies to reduce their investments in mining rigs.
Consequently, miners have initiated the search for alternative Proof-of-Work (PoW) cryptocurrencies as a precautionary measure against the current uncertainty in the bitcoin market.
According to CoinGape, Marathon Digital and other prominent market participants have initiated a pivot by mining PoW currencies such as Kaspa.
Ju also stated that the miners’ present shift does not indicate the end of the current cycle.
He also stated that Bitcoin mining companies are not long-term bearish about Bitcoin; rather, they are hedging and waiting for the buy-side liquidity to recover.
The duration of the BTC miners’ capitulation will be intriguing to observe.
Throughout the second quarter, Bitcoin has maintained a strong support level of $58,000-$60,000, according to QCP Capital.
However, the market continues to experience additional selling pressure as a result of the Bitcoin release from Mt. Gox and the selling by governments.
QCP Capital anticipates that the Bitcoin price will continue to decline until it reaches $50,000, where it will encounter robust support.
Traditional financial institutions may develop an increasing level of interest at this price point.
Miner Capitulation at 18-Month Low
CryptoQuant has noted that Bitcoin miners are presently experiencing a substantial decline in profitability, which is comparable to the severe downturn that occurred in December 2022.
Miners experienced a 7.6% decline in their profits during that time, which coincided with the market’s lowest point following the FTX collapse.