When Bitcoin dipped below $57,000, investors grew increasingly concerned about the market’s volatility and its impact on miners.
On Thursday morning, speculators continued to exert selling pressure, causing Bitcoin (BTC) to fall below $57,000 for the first time since February. By the time of reporting, Bitcoin had rebounded above $57,000, but the earlier swift drop might signal underlying weakness, potentially affecting retail traders’ sentiment.
Blockchain research firm CryptoQuant observed that new cryptocurrency entrants—those who purchased BTC within the last six to three months—have begun moving their coins amid the price decline and “increased selling pressure.” According to the platform’s data, approximately $2.4 billion worth of BTC controlled by these new entrants has started to move, possibly indicating their intent to sell at the current market prices.
💥 BREAKING: Hashprice’s at $44.69, scratching its all time low! pic.twitter.com/FrgDKXB0yw
— Hashrate Index 🟧⛏️ (@hashrateindex) July 4, 2024
Market turmoil may worsen due to miners facing a rapid decline in hashprice, a metric representing miner revenue per terahash. Cryptocurrency mining analysis firm Hashrate Index noted that the hashprice amid Bitcoin’s plunge is “hitting all-time lows,” levels last seen in the bear market. As of the time of reporting, hashprice stood at $44.69, potentially prompting some miners to liquidate their reserves to cover operational costs.
Related: Market Liquidations Exceed $200 Million as BTC and ETH Decline
In an exclusive interview in May, CryptoQuant’s head of research, Julio Moreno, remarked that the market “could witness miner capitulation if prices don’t significantly recover over the summer,” adding that hashprice (average miner revenue per hash) has been “setting new lows” following the latest halving. At the time of writing, Bitcoin was trading at $57,200.
