- Despite miner revenue falling to lows not seen since February last year, CryptoQuant CEO Ki Young Ji is confident miners show no signs of capitulation “for now.”
- Miners now face two options: capitulation or waiting for a rise in Bitcoin’s price to cover their costs.
- The hashprice (expected value of 1 Terahashes of hashing power per day) has fallen to an all-time low of $46.55, down 74% from its post-halving peak.
The revenue of Bitcoin miners has plummeted in recent months despite the recent Bitcoin halving. However, miners are showing no signs of capitulation according to a leading industry CEO.
Revenue Drop Following Halving
In the months immediately following the Bitcoin halving in April, miner revenue surged as crypto enthusiasts paid high fees to be included in the first blocks mined after the event. Unique crypto assets like satoshi hunters and Runes Protocol tokens were in high demand.
However, in recent weeks the appetite for these novel crypto assets has declined in tandem with a broader lull in crypto prices. This has led to a significant drop in miner revenue.
According to Ki Young Ju, CEO of on-chain analytics firm CryptoQuant, miner revenue has now fallen to lows not seen since February 2021. With the decline in the Bitcoin spot price, miner profits are being seriously squeezed.
No Signs of Capitulation
Despite the revenue squeeze, Ki Young Ju believes miners are not showing any signs of capitulation yet. He cites the Puell Multiple chart, which estimates miner sell pressure, as evidence that miners are holding on for now.
The hashprice – the expected yield per unit of hashing power – has also fallen to an all-time low according to Hashrate Index data. This shows that miners are earning less from mining, but are continuing nonetheless.
Bitcoin is currently trading around $60,400, down 18% from its all-time high of $73,700 in March. Ether is down 26% from its 2022 high. If prices continue falling, miners may be forced to sell some of their Bitcoin reserves to remain profitable. For now though, the capitulation point has not yet been reached.
