VanEck: Recent capitulation selling by Bitcoin miners may signal that the bottom is near

Bitcoin's hash rate has decreased by 4% in a month, and miner capitulation has historically been a bullish counter signal. Matt Sigel, head of crypto research at VanEck, along with senior investment analyst Patrick Bush, pointed out that since 2014, when the current hash rate has declined over the past 30 days, the probability of Bitcoin's 90-day forward return being positive is 65%.

The current trading price of Bitcoin is $88,400, down nearly 30% from its historical high. Additionally, the breakeven electricity price for the Bitmain S19 XP miner has dropped from $0.12/kWh to $0.077/kWh. Analysts state that the decline in hash rate may be driven by China shutting down about 1.3 gigawatts of mining capacity, with some of the power potentially redirected to meet AI demands. Currently, 13 countries, including Russia and Japan, still support Bitcoin mining.