Ki Young Ju, CEO of CryptoQuant, stated today that the hash price of Bitcoin has hit a historical low, leading many mining companies to slow down their investments in mining machines, with some shifting towards mining other PoW tokens.
CryptoQuant founder and CEO Ki Young Ju, in response to a question about the situation of mining companies from a production cost perspective, mentioned today that the hash price, which represents the expected income generated per 1 TH/s of hash power per day and is a key indicator of miners’ profitability, has seen a significant decrease. This decline has prompted smaller mining entities to surrender, with Ki Young Ju considering it a precursor to a bull market.
Jan Wuestenfeld, an economist and mining expert focusing on Bitcoin, also highlighted yesterday that the drop in hash price since the fourth Bitcoin halving in April has put pressure on less efficient miners. Ki Young Ju echoed agreement with a netizen’s opinion today, who stated that the surrender of small mining entities is a bullish sign and often a characteristic before a bull market.
Additionally, CryptoQuant analyst Crypto Dan noted yesterday that as of June 27, compared to the first nine days after the Bitcoin halving, withdrawals from miner wallets and the amount of Bitcoin withdrawn had decreased by nearly 90%. This suggests a gradual reduction in the selling pressure from miners, which was considered one of the main reasons for the market downturn in this cycle.
In terms of Bitcoin price, it dropped over 2.8% from $61,875 last night, briefly dipping below $60,000 to a low of $60,079 before rebounding to $60,950 at the time of reporting, representing a 1.1% decrease over the past 24 hours.
Source: Trading View