Following the April halving event, Bitcoin miners experienced a significant drop in revenue, reaching a 14-month low. Despite this decline, there are no immediate signs of capitulation among miners, according to CryptoQuant CEO Ki Young Ju. Ju highlighted two options now facing miners: either surrender to the challenging conditions or wait for Bitcoin prices to rebound sufficiently to cover their operational costs.
Ju referenced the 365-day Puell Multiple chart, an indicator assessing the selling pressure on miners, to support the observation that miners are not exhibiting signs of capitulation "at the moment." This analysis is particularly pertinent given recent worries over potential miner capitulation amid declining cryptocurrency prices.
In the immediate aftermath of the halving, Bitcoin miner income saw a surge, buoyed by heightened demand from rare Satoshi hunters and enthusiasts of assets like the Rune Protocol. However, interest in these assets has waned in recent weeks, coinciding with relatively stable price movements across the broader cryptocurrency market.
The Bitcoin Layer, a market research provider, underscored the challenges facing miners post-halving, noting that while they initially benefited from a brief respite, declining Bitcoin prices have severely squeezed their profits. The risk of miner capitulation looms larger as profits diminish, particularly if Bitcoin's price correction persists over the coming days or weeks.
Moreover, data from Hashrate Index indicates that Bitcoin's hashrate price, representing the expected value of 1 terahash of hashrate per day, has hit an all-time low. This decline, down 74% from its post-halving peak, further underscores the challenging environment miners currently face. Despite these headwinds, Bitcoin's price remains resilient at $60,400, though it has retreated 18% from its peak in mid-March. Similarly, Ethereum, the second-largest cryptocurrency, has seen a 26% decline from its yearly high reached on March 12.
