Ki Young Ju, founder and CEO of cryptocurrency analytics firm CryptoQuant, has stated that Bitcoin miner capitulation is still not over.
He pointed to historical data which shows that such capitulation phases typically end when the daily average mined value is 40% of the yearly average. However, it currently stands at 72%.
The term "miner capitulation" refers to a period when cryptocurrency miners are struggling to make ends meet due to declining profitability. Miners are forced to liquidate their Bitcoin reserves due to declining prices and fees. Even though pundits pay a lot of attention to Mt. Gox's repayments and the German government's selling spree, the predicament of miners is also one of the key bearish factors.
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The hashrate recently declined to 552 EH/s after reaching its current peak of 657 EH/s, according to data provided by Blockchain.com. This indicates that a lot of miners are currently in the process of switching off their equipment.
Last week, CryptoQuant noted that substantial hashrate drops historically tend to be signals of bottoming conditions.
A "boring" market
Ju believes that the price action is going to be boring over the next few months, but he urged market participants to remain bullish in the long term while avoiding excessive risks.
According to data provided by CryptoQuant, the cryptocurrency is currently changing hands at $59,064 after peaking at $59,322 earlier this Wednesday.
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Earlier this month, Ju stated that a "boring" Bitcoin was a buying opportunity.
Last week, the largest cryptocurrency plummeted below the $54,000 level. However, the bulls have since managed to regain some ground due to strong inflows recorded by Bitcoin exchange-traded funds (ETFs). On July 9, these products recorded $216.4 million of net inflows.