Bitcoin miners are facing increased scrutiny as the hash rate slows down, operational costs rise, and the price of the asset continues to drop. Analysts are closely monitoring miner-side sell pressure to gauge the severity of any potential selloff.
James Check recently analyzed the Puell multiple to assess the stress levels of miners. While they may not be in extreme distress, they are certainly not in a comfortable position either. The current situation shows miners on the brink of capitulation, especially with the recent hash ribbon inversion indicating a period of difficulty.
Despite a 4% decline in the overall hash rate, miners are not completely offloading their assets in a fire sale. This suggests that they are trying to stay afloat rather than completely giving up. Willy Woo also weighed in, noting that bitcoin will see a recovery once weaker miners exit the market.
In terms of price outlook, Bitcoin recently hit a five-week low of $63,550 before bouncing back to $64,000. Analysts like “Don Alt” warn that the market is at a critical level, and a break below $60,000 could lead to a further decline to $52,000. This could trigger miner capitulation and additional selling pressure.
Overall, the cryptocurrency market remains volatile, with various factors influencing the price of Bitcoin. Traders and investors are advised to closely monitor market trends and be prepared for potential fluctuations in the coming weeks.