Bitcoin
Bitcoin Mining Companies Are Switching to Other Currencies Amid Rising Cost of Operations: CryptoQuant CEO
Bitcoin (BTC) miners are reportedly hedging against the recent price drop by mining other cryptocurrencies, according to the CEO of CryptoQuant.
Ki Young Ju says Bitcoin’s hashrate is now at an all-time low, potentially causing a slowdown in investment for mining companies and prompting them to look for other, cheaper proof-of-work (PoW) coins to mine for now.
Hashprice refers to the expected value of 1 TH/s of hash power per day and aims to quantify how much a miner can expect to earn from a given amount of hashrate.
Ju says,
“Bitcoin hash price has reached an all-time low. Many mining companies have slowed down investment in mining rigs, with some switching to other PoW coins to hedge against market uncertainty…
This does not mean the end of the cycle. And they are not pessimistic in the long term; they are just hedging and waiting for buyer liquidity to recover, in my opinion.”
Source: Ki Young Ju/X
However, Ju agree that the trend signifies a capitulation by miners, which is usually a characteristic of a pre-Bitcoin bull run.
At the time of writing, BTC was trading at $60,681.
Recently, Ju he said that Ethereum (ETH) The Market Value to Realized Value (MVRV) indicator signaled the start of a new season.
The MVRV indicator, which is used to assess whether a given crypto asset is undervalued or overvalued, is the ratio of the market capitalization of Ethereum, or any other crypto asset, to its realized capitalization (the value of all ETH at the price they were purchased).
“We are entering the beginning of the altcoin season.
ETH’s MVRV is rising faster than Bitcoin’s (BTC) MVRV, suggesting the ETH market is heating up relative to its on-chain fundamentals.
Given the current ETF situation, this could be an ETH-only season. Historically, when ETH goes up, other altcoins tend to follow.”
Source: Ki Young Ju/X
ETH is trading at $3,360 at the time of writing.
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