Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
On April 30, CryptoQuant CEO Ki Young Ju discussed the challenges Bitcoin miners are facing after the halving event. The researcher noted that miners find themselves at a pivotal moment – they can either surrender to the prevailing market conditions or hold out for a potential increase in BTC prices.
Bitcoin Miners May Succumb to Halving Event Pressures
Ju voiced his apprehensions on X, stating that Bitcoin miners are retaining their cryptocurrency holdings despite a significant decline in revenues. Revenues have fallen to levels seen in 2023 due to the recent Bitcoin Halving, which reduced block rewards from 6.25 BTC to 3.125 BTC.
#Bitcoin miners’ revenue has decreased to levels observed in early 2023 following the halving.
Now they face two choices: 1. Capitulation, or 2. Waiting for a rise in $BTC price.
Currently, there are no indications of capitulation. pic.twitter.com/8GrYk7zcN1
— Ki Young Ju (@ki_young_ju) April 30, 2024
Although miners experienced a temporary spike in revenue exceeding $100 million on the day of the halving, this has since diminished, with Ju noting that “there are no signs of capitulation for now.”
Capitulation among Bitcoin miners occurs when prices decline, forcing less-efficient miners off the network as the Bitcoin they generate does not cover mining costs. This situation can lead to the sale of their reserve Bitcoin, further driving down prices.
Conversely, if miners choose to wait for a price increase, they are essentially banking on Bitcoin’s future rise, which would enhance their mining profitability.
The #Bitcoin miners I know are a group of individuals with unwavering faith in Bitcoin and cryptocurrencies, so capitulation is never an option. Neither is it for me. https://t.co/FfAF6FAbeb
— fat_bear@okx (@okx_fat_bear) April 30, 2024
Related Posts
At the time of reporting, BTC is trading at $60K, reflecting a decline of 4.46% in the last 24 hours, 9.47% over the past week, and 17.1% since reaching its all-time high of $73,750 on March 14, 2024.
BTC market data in the past seven days
Historically, Bitcoin prices have exhibited volatility around halving events, often leading to anticipations of a potential rally due to the increased scarcity of the asset.
The latest Bitcoin halving took a different trajectory as BTC had already achieved a new all-time high prior to the halving, prompting enthusiasts and global crypto communities to suggest that market dynamics have evolved compared to earlier halving cycles.
Analysts Predict Selloffs & Price Increases for Bitcoin Miners
Market analysts have made price forecasts for Bitcoin following the halving, with some anticipating a price rise due to the altered rate of new coin creation.
10x Research issued a cautionary outlook indicating that Bitcoin miners might liquidate as much as $5 billion after the halving. Markus Thielen, Head of Research at 10x Research, suggested that significant upward movement in the crypto markets may not occur until October 2024.
In contrast, Coincodex projected a positive market sentiment leading up to and following the Bitcoin halving, with forecasts suggesting that Bitcoin could undergo a minor retracement approximately a month after the event. However, this retracement would be succeeded by a 14-month rally, ultimately reaching a new all-time high of around $179,000 in August 2025.
The post Bitcoin Miners Not Showing Capitulation Signs, Says CryptoQuant CEO appeared first on Cryptonews.
