Ki Young Ju, founder and CEO of cryptocurrency analysis agency CryptoQuant, said today (29th) when answering a question about "What is the situation of mining companies in terms of production costs?":
Bitcoin’s hash price hits an all-time low. Many mining companies have slowed down investment in mining machines, and some of them have turned to mining other PoW tokens to hedge against market uncertainty.
This does not mean the end of the cycle. And they are not bearish long-term, in my opinion they are just hedging and waiting for buy-side liquidity to return.
Extended reading: Bitcoin mining company Marathon announced that it has been mining Kaspa for nine months, making a huge profit of $15 million, and KAS jumped 15%
Falling hash prices force small miners to capitulate, CryptoQuant CEO: Bull market precursor
Jan Wuestenfeld, an economist and mining expert who focuses on Bitcoin, also pointed out yesterday that the decline in hash prices since the fourth Bitcoin halving in April has put pressure on inefficient miners.
Ki Young Ju today agreed with a netizen who said: "The capitulation of small miners is bullish and is generally a characteristic of pre-bull markets."
Miners' selling pressure weakens, Q3 market bullish
It is also worth mentioning that CryptoQuant analyst Crypto Dan issued an article yesterday stating that as of June 27, compared with the first nine days after the Bitcoin halving, the number of withdrawals from miner wallets and the number of Bitcoins proposed have been significantly reduced. 90%, showing that the selling pressure caused by miners on the market is gradually weakening (in this decline, miners' selling is considered to be one of the main reasons for the lower market).
The market is currently digesting the selling from miners, and once all the selling pressure is absorbed, the cryptocurrency market is expected to see a positive upward trend in Q3.
In terms of Bitcoin price, it fell by more than 2.8% from US$61,875 last night, once as low as US$60,000, and as low as US$60,079. By the time of writing, it had returned to US$60,950, down 1.1% in the past 24 hours.
