Bitcoin miners are not giving up despite experiencing a significant drop in revenue since the halving event in April. According to CryptoQuant CEO Ki Young Ju, miners currently have two choices: either capitulate or wait for the price of Bitcoin to increase and cover their costs. However, Ju’s analysis of the 365-day Puell Multiple chart suggests that miners are not capitulating at the moment.
Miner revenue has reached its lowest point since February 25, 2023, causing concerns about miner capitulation. Initially, miner revenue had surged after the halving, with enthusiasts paying high prices for the first blocks mined after the event. However, the demand for these Bitcoin-based assets has decreased recently due to a general decline in the crypto market.
The Bitcoin Layer, a market research provider, explained that miners enjoyed a brief period of relief after the halving when the price of Bitcoin rose. However, their profits have now been severely impacted by the declining BTC price. The firm warned that miner capitulation risks are increasing, and if the price continues to fall, miners may have to sell a significant amount of Bitcoin to protect themselves.
Data from the Hashrate Index shows that Bitcoin’s hash rate, which represents the expected value of one terahash of hashing power per day, has dropped to an all-time low of $46.55. This marks a 74% decrease from its peak after the halving. Additionally, Bitcoin’s current price is $60,400, down 18% from its all-time high in March.
Ether, the second-largest cryptocurrency, has also declined by 26% from its yearly high in March, reaching $4,070. This further adds to the concerns in the crypto market.
In conclusion, despite the challenges faced by Bitcoin miners after the halving, they are not giving up. The drop in revenue has raised concerns about miner capitulation, but for now, miners show no signs of surrendering.