CryptoQuant CEO sees no signs of Bitcoin miners capitulation ‘for now’

Despite
the
drop
in
revenue
for
Bitcoin
miners
to
levels
last
seen
in
early
2023,
they
are
holding
onto
their
holdings
rather
than
selling,
CryptoQuant
says.

Bitcoin
miners
are
not
selling
their
crypto
holdings
at
current
prices
even
though
their
revenue
has
dropped
to
levels
last
seen
in
early
2023
due
to
the
recent

halving,
which
reduced
fixed
block
rewards
from
6.25
BTC
to
3.125
BTC.

In

an
X
post
on
Apr.
30,
CryptoQuant
CEO
Ki
Young
Ju
said
that
miners
now
have
two
options:
capitulate
or
wait
for
a
rise
in
Bitcoin’s
price,
which
is
currently
trading
at
around
$63,000,
adding
that
“there
are
no
signs
of
capitulation
for
now.”

Analysts
at
Coinbase
Research
noted
in
a
research
report
that
following
the
halving,
the
coordinated
release
of
Runes
on
Bitcoin,
an
alternative
to
the
BRC-20
protocol,
resulted
in
“an
all-time
high
of
$81
million
spent
on
transaction
fees
in
one
day.”
The
analysts
say
the

increase
in
variable
transaction
fees
in
conjunction
with
the
BTC
rally
during
Q1
“could
support
the
continued
growth
of
network
hash
rate
for
some
time,”
suggesting
miners
may
find
it
profitable
to
continue
participating
in
BTC
mining
at
current
price
levels.

Bitcoin

underwent
its
fourth
halving
on
Apr.
20
after
its
840,000th
block
was
mined.
The
network
is
programmed
to
undergo
halvings
every
210,000
blocks,
reducing
the
block
reward
by
half
each
time.
This
event
is
considered
by
the
crypto
community
as
significant
as
it
affects
the
supply
of
new
Bitcoins
entering
circulation.

Historically,
Bitcoin’s
price
has
experienced
significant
movements
around
halving
events,
with
some
investors
anticipating
a
price
increase
due
to
the
recent
reduction
in
supply.
However,
the
latest
upgrade
occurred
in
a
different
context,
as
Bitcoin
reached
a
new
all-time
high
even
before
the
halving
took
place,
leading

some
to
argue
that
the
landscape
has
evolved
compared
to
previous
cycles.