Bitcoin (BTC) miners are reportedly taking defensive measures against the recent price decline by diversifying into other cryptocurrencies, CryptoQuant CEO Ki Young Ju revealed.
According to Ju, Bitcoin’s hashprice has reached an unprecedented low, prompting a slowdown in mining investments. In response, many mining firms are turning to alternative proof-of-work (PoW) coins that offer more cost-effective mining opportunities for the time being.
Hashprice, which quantifies the daily expected value of 1 TH/s of hashing power, indicates the potential earnings for miners based on their hashrate.
“Bitcoin’s hashprice has hit an all-time low. Several mining companies have scaled back their investments in mining rigs, opting instead to hedge against market uncertainties by mining other PoW coins,” explained Ju. “This isn’t necessarily indicative of a downturn in the cycle. They’re not bearish in the long term; they’re simply hedging their bets and awaiting a recovery in buy-side liquidity.”
Ju acknowledges that this trend reflects a capitulation among miners, a typical precursor to a bullish period for Bitcoin.
As of the latest update, BTC is trading at $60,681.
Ju recently highlighted Ethereum’s (ETH) Market Value to Realized Value (MVRV) indicator, suggesting the onset of an altseason.
The MVRV indicator assesses whether a crypto asset is undervalued or overvalued by comparing its market capitalization to its realized capitalization (the aggregate value of all ETH at their respective purchase prices).
“We’re seeing the early stages of an altcoin season. ETH’s MVRV is rising faster than BTC’s, indicating that the Ethereum market is heating up relative to its on-chain metrics,” Ju pointed out. “Given the current ETF dynamics, this may evolve into an Ethereum-centric season. Historically, when ETH rallies, other altcoins often follow suit.”
ETH is currently trading at $3,360.
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Source: Ki Young Ju/X
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