Bitcoin (BTC) price attempts recovery as a significant development occurred. CryptoQuant’s founder and CEO Ki Young Ju recently stated that Bitcoin miner capitulation is still ongoing.
Miners Fight Hard to Avoid Capitulation
Historical data shows that miner capitulation phases tend to end when the daily average mining value is 40% of the annual average, and currently, this rate is at 72%, indicating miners are still struggling.
Miner capitulation refers to a period when crypto miners are forced to liquidate their BTC reserves due to falling prices and transaction fees, facing reduced profitability. Despite interest in events like Mt. Gox repayments and German government Bitcoin sales, the challenges faced by miners remain a significant bearish factor for the market.
According to Blockchain.com, the recent Bitcoin network’s computational power measured by hashrate fell from a peak of 657 EH/s to 552 EH/s. This decline indicates that many miners are shutting down their mining devices due to adverse market conditions.
“Boring Market” Warning
CryptoQuant noted last week that significant drops in hashrate have historically signaled bottoming processes, potentially indicating a recovery in the near future. However, Ju believes the market will enter a “boring” price movement period in the coming months. Ju advised market participants to avoid excessive risks and take positions on the long-term bullish side.
The largest cryptocurrency fell below $54,000 last week but has since gained strength and recovered. This recovery was partly driven by strong inflows into Bitcoin exchange-traded funds (ETFs). These ETFs saw a net inflow of $216.4 million on July 9, indicating renewed investor interest. BTC peaked at $59,322 at the time of writing, trading at $59,064.
