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Bitcoin miners could face significant challenges as summer approaches, according to CryptoQuant. Despite Bitcoin’s price dropping below $58,000, major capitulation among miners has not yet occurred. The network hashrate remains slightly higher than pre-halving levels, allowing miners to still make a profit with efficient equipment.
Profitability can be seen in the break-even electricity price for ASIC models S19 and S21, which is above the electricity cost of large industrial miners. However, retail miners using older ASICs may be experiencing negative profits due to higher electricity costs, potentially leading to a capitulation event depending on how network hashrate and prices evolve in the coming weeks.
Addressing concerns about potential price volatility during the summer trading slowdown, CryptoQuant’s head of research emphasized that miners typically respond to price movements rather than the other way around. However, if prices do not recover significantly during the summer, a miner capitulation could be more likely, especially with the hashprice making new lows.
Bitcoin miners are currently not selling their holdings at current prices, despite revenue dropping to levels last seen in early 2023 after the recent halving. With two options available – capitulate or wait for a rise in Bitcoin’s price – miners are closely monitoring the market as Bitcoin continues to trade below $58,000.
