Bitcoin Price Bounce Will Occur When ‘Weak Hands’ Capitulate and Hashrate Recovers

Analysts say Bitcoin price will rally only after BTC miners capitulate and the network’s hashrate recovers.

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• Bitcoin (BTC) has been in a downtrend for over two weeks and now trades 13.8% below its all-time high of $73,835, reached on March 14. Analysts argue that BTC must recover its hashrate and shake off “weak hands” to end the downtrend.
• Independent analyst Willy Woo noted that Bitcoin’s price would only recover when “weak miners die” and the hashrate recovers.
• Miner capitulation is a theory that posits that miners will turn off their hardware and sell their coins if Bitcoin falls below a certain price and mining becomes unprofitable.
• When Bitcoin “sheds weak hands,” it means “inefficient miners running old hardware and high costs go into bankruptcy. While others are forced to upgrade hardware that’s more efficient” because their revenues have been halved.

• Woo added that capitulation is taking longer during the current cycle, probably due to profit boosts. “Thanks to ordinal inscriptions.”
• In comparison, the hashrate took 24 days to recover during the 2017 cycle and only 8 days in 2020.
• Bitcoin hashrate refers to the number of attempts made per second to solve the mathematical puzzle that validates Bitcoin transactions.

• When the Bitcoin hashrate rises, more computing power is used, which increases energy costs and lengthens verification and transaction times.
• “Bitcoin’s average mining cost is currently at $86,668,” declared fellow analyst Ali Martinez in a June 15 post on X.

Also weighing in on when the Bitcoin price is likely to end the downtrend is fellow analyst Mr. Anderson who said it will take a “shake out,” which takes place “when price drops sharply, causing less committed traders to sell.’

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.