Recent Bitcoin miner capitulation may signal bottom is near: VanEck

VanEck analysts, Matt Sigel and Patrick Bush, suggest that the recent 4% drop in Bitcoin's hashrate by December 15th signals miner capitulation, which has historically been a bullish contrarian signal for the cryptocurrency's price. They noted that since 2014, when the 30-day hashrate declined, 90-day forward returns for Bitcoin have been positive 65% of the time, compared to 54% when the hashrate increased. This trend is even stronger over 180 days. The analysts also highlighted the harsh conditions for miners, evidenced by the breakeven electricity price for a popular S19 XP miner falling nearly 36% from $0.12/kWh in December 2024 to $0.077/kWh in mid-December. The recent hashrate fall was likely caused by the shutdown of about 1.3 gigawatts of mining capacity in China, with some of that power potentially shifting to AI demand. Despite some shifts, VanEck estimates up to 13 countries still support Bitcoin mining activities.

(Source：Cointelegraph)