Bitcoin Miners at a Crossroad Post-Halving: Capitulation or Price Increase?
The recent Bitcoin halving event has put miners in a tough spot, with revenues dropping to 2023 levels. CryptoQuant CEO Ki Young Ju highlighted the dilemma miners face – either capitulate to current market conditions or wait for a potential BTC price increase.
Despite a temporary surge in revenue on the halving day, miners are now grappling with reduced earnings. Ju noted that there are currently no signs of capitulation among miners, who are holding onto their crypto holdings in hopes of a price increase.
Miners typically capitulate when the price drops, forcing less-efficient miners off the network. This can lead to further price drops as they sell their reserve Bitcoin. On the other hand, waiting for a price increase means miners are banking on a future rise in Bitcoin’s value to make mining profitable.
Bitcoin is currently trading at $60K, down in the last 24 hours and the past week. Analysts have mixed forecasts for Bitcoin post-halving, with some predicting selloffs of up to $5 billion while others anticipate a rally to a new all-time high of $179,000 by August 2025.
The market dynamics post-halving have shifted compared to previous cycles, with expectations of increased scarcity leading to potential price increases. It remains to be seen how miners will navigate these challenging market conditions in the coming months.
