Miners capitulation looms if Bitcoin fails to recover significantly, CryptoQuant says

Miners are on the verge of capitulation if Bitcoin fails to make a significant recovery, warns CryptoQuant. With the arrival of summer, the warm month poses challenges for Bitcoin miners, especially if prices remain stagnant. Despite the recent price drop, major capitulation among miners has not yet taken place. CryptoQuant’s head of research, Julio Moreno, noted that the network’s hashrate is still slightly higher than pre-halving levels, allowing miners to make a profit with efficient equipment. However, retail miners using older ASICs may be experiencing negative profits due to higher electricity costs. The occurrence of a capitulation event will depend on the evolution of both network hashrate and prices in the next few weeks. Moreno also acknowledged the potential for more selling pressure in the coming months, which could lead to miner capitulation if prices fail to recover significantly during the summer. Despite their reduced revenue post-halving, miners are not selling their holdings at current prices, opting to wait for a price rise.