Bitcoin (BTC) miners are adapting to recent price declines by diversifying into other cryptocurrencies, reports CryptoQuant CEO Ki Young Ju. With Bitcoin’s hashprice hitting record lows, mining firms are scaling back investments in mining rigs and exploring alternative proof-of-work (PoW) coins to mitigate market uncertainty.
Hashprice, which estimates the daily earnings per terahash of hashing power, is a critical metric for miners. According to Ju, “Bitcoin hashprice hit an all-time low. Many mining companies have slowed rig investments and are switching to other PoW coins to hedge against market uncertainty. This isn’t signaling the end of the cycle; they’re hedging and waiting for buy-side liquidity to recover.”
Ju acknowledges that this trend reflects miner capitulation, often a precursor to a bullish phase in Bitcoin’s cycle. As of the latest update, BTC is trading at $60,681. Ju recently noted Ethereum’s (ETH) Market Value to Realized Value (MVRV) indicator, suggesting the onset of an altcoin season.
The MVRV indicator gauges whether a cryptocurrency is overvalued or undervalued by comparing its market capitalization to its realized capitalization. “We’re witnessing the early stages of an altcoin season,” Ju remarked. “ETH’s MVRV is rising faster than BTC’s, indicating a surge in ETH’s market activity relative to its on-chain metrics. Given the current ETF dynamics, this could be primarily an ETH-driven phase, historically benefiting other altcoins.”
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