Bitcoin (BTC) Miner Capitulation Is Still Not Over, Says CryptoQuant CEO Ki Young Ju

Ki Young Ju, founder and CEO of cryptocurrency analytics firm CryptoQuant, has stated that Bitcoin miner capitulation is still not over.

Cryptocurrency miners are still feeling the heat, and their capitulation is not over yet, according to Ki Young Ju, founder and CEO of cryptocurrency analytics firm CryptoQuant.

Highlighting historical data, Ju noted that such capitulation phases tend to conclude when the daily average mined value reaches 40% of the yearly average. However, it currently stands at 72%.

The term "miner capitulation" describes a period where cryptocurrency miners face difficulties in meeting their expenses due to decreasing profitability. As a result, they are forced to sell their Bitcoin reserves amid declining prices and fees. While attention is often paid to Mt. Gox's repayments and the German government's selling spree, the miners' predicament also contributes to the bearish market.

According to data from Blockchain.com, the hashrate has recently dropped to 552 EH/s from its recent peak at 657 EH/s. This indicates that a significant number of miners are switching off their equipment.

Last week, CryptoQuant observed that substantial hashrate drops have historically signaled bottoming conditions.

A "boring" market

Ju advises market participants to stay bullish in the long term while avoiding excessive risks, considering the price action is likely to be dull over the next few months.

According to CryptoQuant, the cryptocurrency is currently trading at $59,064, having peaked at $59,322 earlier on Wednesday.

Earlier this month, Ju highlighted that a "boring" Bitcoin presents a buying opportunity.

Last week, the primary cryptocurrency fell below the $54,000 level. However, it has since seen some recovery thanks to strong inflows into Bitcoin exchange-traded funds (ETFs). On July 9, these products saw a net inflow of $216.4 million.