According to Ki Young Ju, CEO of crypto analysis company CryptoQuant, despite the decrease in Bitcoin mining revenues after the block reward halving, miners maintain their stability without showing any signs of capitulation. This situation in the Bitcoin mining industry reveals that miners are showing resistance.
Bitcoin Miners Have 2 Options
Ju underlined the current predicament of miners, who are faced with two options: either surrender to the difficulties or wait for a possible rise in the price of BTC to offset their operational costs. Evaluating the market on the 365-day Puell Multiple chart, Ju stated that there is a resistance among miners, which shows that there will be no surrender in the short term.
The recent drop in prices of Bitcoin and altcoins has raised concerns about potential miner capitulation, as Bitcoin miner revenue surged immediately following the block reward halving fueled by increased demand for newly minted BTCs. However, this enthusiasm has since faded, coinciding with the market-wide decline.
The Bitcoin Layer, a respected market research organization, backed Ju's views, highlighting the significant pressure on miners' profits following the block reward halving, which was further exacerbated by the negative movement in Bitcoin's spot price.
Hashrate Price Dropped Hard
The decline in the price of Bitcoin's hashrate, a metric that measures the expected value of hashrate, serves as a concrete indicator of the challenges facing miners right now. Latest data from the hashrate index reveals that the hashrate price has fallen to an all-time low of $46.55, which corresponds to a significant 74 percent drop from the post-block reward halving peak. This decline reflects intense pressure on miners as they struggle with diminishing revenue streams in a volatile market environment.
In line with Bitcoin's performance, #Ethereum (ETH), the second-largest cryptocurrency and also the largest altcoin, has also faced downward pressure, falling 10 percent from its yearly high of $4,070 on March 12. There was a decrease of 26. The market-wide decline demonstrates the interconnectedness of cryptocurrencies, with ETH mirroring Bitcoin's trajectory amid market fluctuations. This correlation demonstrates the challenges faced by miners on various blockchain networks and highlights the importance of operational efficiency and cost management strategy for miners amid market-wide uncertainties.
