Concerns among investors regarding potential market volatility and its impact on miners have surged as Bitcoin fell below the $57,000 mark. Speculators continued to exert selling pressure, causing Bitcoin to dip below $57,000 for the first time since February. Although Bitcoin has rebounded above this level, its previous rapid decline may indicate weakness and affect sentiment among retail traders.
According to blockchain research firm CryptoQuant, crypto beginners who purchased BTC in the past six to three months have begun moving their coins amid the plunge, resulting in increased selling pressure. Approximately $2.4 billion worth of BTC controlled by these crypto beginners has started to move, suggesting their intention to sell at current market prices.
Miners, who are experiencing a significant drop in hashprice (miner revenue per terahash), may worsen the market turbulence. Hashrate Index, a crypto mining analytics firm, highlighted that the hashprice mark is at its all-time low, a level previously seen during the bear market. This decline in hashprice, currently at $44.69, may lead some miners to liquidate their reserves to sustain operational expenses.
In an exclusive interview with crypto.news in May, CryptoQuant’s head of research, Julio Moreno, stated that the market is likely to witness a miner capitulation if prices do not recover significantly during the summer. He added that the hashprice, which represents average miner revenue per hash, is consistently reaching new lows following the latest halving. At the time of writing, Bitcoin is trading at $57,336, according to data from crypto.news.
Read more: Bitcoin’s halving is unlikely to impact prices in the next 18 months, according to Kaiko.