Bitcoin (BTC) miners are reportedly mining other cryptocurrencies to prepare for the recent price drop, according to the CEO of CryptoQuant.
Ki Yong-ju said that with Bitcoin’s hash price currently at an all-time low, it’s possible that mining companies will slow down their investments and turn to other cheaper proof-of-work (PoW) coins for the time being.
Hashprice refers to the expected value of 1 TH/s of hashing power per day and aims to quantify the revenue a miner can expect from a particular hashrate.
Ju says,
“Bitcoin’s hash price hit an all-time low. Many mining companies slowed down their investments in mining rigs, and some switched to other PoW coins to avoid market uncertainty…
This does not mean the end of the cycle, nor are they long-term bears. In my opinion, they are simply hedging and waiting for buy-side liquidity to return.”
However, agree This trend signals miner capitulation, which is typically a hallmark of pre-Bitcoin bull markets.
At the time of writing, BTC is trading at $60,681.
Recently, Ju said that Ethereum’s (ETH) market value versus realized value (MVRV) indicator indicates the start of alt season.
The MVRV metric is used to assess whether a particular crypto asset is undervalued or overvalued, and is the ratio of the market cap of Ethereum or any other crypto asset to its realized market cap (the value of all ETH at the purchase price).
“We are in the early stages of altcoin season.
ETH MVRV is rising faster than Bitcoin (BTC) MVRV, suggesting that the ETH market is heating up relative to on-chain fundamentals.
Given the current ETF landscape, this may be an ETH-only season. Historically, when ETH spikes, other altcoins tend to follow suit.”
At the time of writing, ETH is trading at $3,360.
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