Bitcoin (BTC) has been in a bearish phase for over two weeks, currently trading 13.8% below its all-time high of $73,835, reached on March 14. Analysts argue that Bitcoin will have to restore its hashrate and get rid of “weak hands” to end the downtrend.
According to independent analyst Willy Woo, the price of BTC will only recover when “weak miners will die” and the hashrate will recover. Usually following halvings, which halve the rewards for mining blocks, less efficient miners are forced to turn off their hardware and sell their BTC.
Woo commented in this regard:
“At some point Bitcoin will get rid of inefficient miners, whose production costs are high due to aging hardware: these entities will go bankrupt. The others will be forced to upgrade their hardware with more efficient machines.
Why? Because after the halving, with the same costs, their revenue halved. Both cases force miners to sell their BTC: to cover losses, or to upgrade hardware.
Once all this happens, selling will end and only the strongest will remain in the market, who will HODL waiting for higher prices.”
Woo added that the capitulation of weak miners is happening slower than usual due to Ordinals signups, which have boosted miners’ revenue. He also shared the following graph, which shows how hashrate recovery is taking longer than previous cycles:
“We are still waiting for the weakest miners to die. 61 days have passed,” Woo said. In comparison, the hashrate took 24 days to recover during the 2017 cycle and only 8 days in 2020.
“The average cost to mine one BTC is currently $86,668,” analyst Ali Martinez said in a June 15 X post. “Historically, BTC always exceeds the average mining cost!“
The analyst Mr. Anderson also expressed his opinion on the date in which Bitcoin could end its bearish trend:
“We will need a jolt. When the price drops sharply, causing less committed traders to sell. The goal is to trigger panic and increase selling.
Once weaker traders flee, the price will stabilize or rebound as stronger traders start buying at lower prices.”
