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Despite a significant decrease in Bitcoin mining revenue since the halving event, CryptoQuant CEO Ki Young Ju reports that miners remain resilient without showing signs of capitulation.
Following the April halving event, Bitcoin miners’ revenue dropped to 14-month lows. In an April 30 post on X, Ju explained that miners now face two choices: capitulation or waiting for a rise in Bitcoin’s price to offset costs.
Ju referenced the 365-day Puell Multiple chart, a metric that assesses sell pressure from miners, to highlight that miners aren’t capitulating yet. Concerns about miner capitulation have risen due to recent dips in crypto prices.
Initially, miners benefited from an immediate surge in revenue post-halving, with demand for novel Bitcoin-based assets boosting income. However, the excitement has since waned alongside a general market downturn.
Market research provider The Bitcoin Layer noted that miners enjoyed temporary relief as Bitcoin’s price climbed post-halving, but their profits have been squeezed as the spot price declined.
The firm cautioned that if the downtrend in Bitcoin’s price continues for an extended period, major miners may be forced to liquidate a significant amount of Bitcoin to hedge their operations.
Hashrate Index data shows Bitcoin’s hash price, or the daily value of one terahash of hashing power, has reached an all-time low of $46.55, down 74% from its post-halving peak.
Bitcoin’s current price hovers around $60,400, marking an 18% decline from its all-time high of $73,700 on March 14 according to TradingView. Ethereum, the second-largest cryptocurrency, is also down 26% from its yearly high of $4,070 on March 12.