Bitcoin
Bitcoin’s Rapid Drop Below $57K Forces Beginners to Capitulate, Says CryptoQuant
As Bitcoin dipped below the $57,000 mark, concerns arose among investors about potential market volatility and its impact on miners.
On Thursday morning, speculators continued their selling pressure, forcing Bitcoin (BTC) to fall below $57,000 for the first time since February. At press time, Bitcoin has recovered above the $57,000 mark, but its previous rapid decline could signal weakness, potentially impacting sentiment among retail traders.
Bitcoin Daily Price in USD | Source: crypto.news
Blockchain research firm CryptoQuant noted that crypto newbies — who bought BTC in the past six to three months — have started moving their coins amid the dip and “increasing selling pressure.” According to the platform dataApproximately $2.4 billion worth of BTC held by cryptocurrency newbies has begun to move, likely signaling their intent to sell at current market prices.
Market turmoil could also be exacerbated by miners facing a rapidly falling hashrate, a metric that represents miner revenue per terahash. Cryptocurrency mining analytics firm Hashrate Index observed that the hash price mark amid Bitcoin’s slump is “scraping its all-time low,” a level last seen during the bear market. At press time, the hash price is at $44.69, potentially prompting some miners to liquidate their reserves to sustain operating expenses.
In May exclusive interview Speaking to crypto.news, CryptoQuant’s head of research Julio Moreno noted that the market “will likely see a miner capitulation if prices do not recover significantly over the summer,” adding that the hashprice (average miner revenue per hash) has been repeatedly “making new lows” following the last halving. At the time of writing, Bitcoin was trading at $57,336, according to data from crypto.news.