Declining mining activity flashes ‘bullish signal’ for bitcoin price, VanEck says

A new report from VanEck suggests that the recent 4% decline in Bitcoin's network hashrate, the sharpest since April 2024, acts as a bullish indicator for the price. Analysts found that since 2014, 90-day forward Bitcoin returns were positive 65% of the time when the hashrate was shrinking, compared to 54% when it was growing, attributing this to miner capitulation where weaker operators exit under financial stress. This pressure is evident as breakeven electricity costs for mid-generation rigs have dropped significantly. Despite miner struggles, the report notes that longer-term institutional buyers, specifically Digital Asset Treasuries (DATs), have accelerated purchases, acquiring about 42,000 BTC in the last month, suggesting strong underlying demand.

(Source：The Block)