{"id":1140,"date":"2022-01-15T15:05:22","date_gmt":"2022-01-15T15:05:22","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=1140"},"modified":"2022-01-15T15:05:23","modified_gmt":"2022-01-15T15:05:23","slug":"bitcoin-miners-can-take-fresh-20-btc-price-hit-before-capitulating-data-shows","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1140","title":{"rendered":"Bitcoin miners can take fresh 20% BTC price hit before capitulating, data shows"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>The Bitcoin (BTC) mining\u00a0business  is bigger than ever at current price levels, and new data shows just how unlikely a mass miner sell-off really is.<\/p>\n<p>As noted by popular Twitter account @venturefounder on Jan. 14, even at $42,000, the BTC\/USD trading pair is around 20% above miners&#8217; cost price.<\/p>\n<h2>Miner capitulation behind &#8220;worst&#8221; BTC price dips<\/h2>\n<p>Despite falling a full $27,000 below all-time highs, BTC is more enticing than ever for miners. Hash rate, an estimate of the total processing power dedicated to mining,\u00a0reached new all-time highs this week.<\/p>\n<p>Those concerned that a fresh BTC price dip could pressure miners into selling, meanwhile, received fresh assurances via data covering how much BTC\/USD should trade at for them to break even.<\/p>\n<p>Referencing the BTC production cost indicator from Charles Edwards, CEO of asset manager Capriole, venturefounder revealed that the breakeven point currently stands at $34,000.<\/p>\n<p>&#8220;The worst dumps Bitcoin ever had were due to miners capitulation (December 2018, March 2020), when BTC fell below production costs, it is at risk for miner capitulation,&#8221; he added in comments. <\/p>\n<p>&#8220;BTC was at risk for miner capitulation at $30k in May. The current production cost is $34k, 20% below current price.&#8221;<em>Bitcoin production cost annotated chart (screenshot). Source: @venturefounder\/Twitter<\/em><\/p>\n<p>As such, there is no reason for miners to sell thanks to the profitability \u2014 as well as future perspective \u2014 of their operations.<\/p>\n<p>In a Medium post about his indicator from 2019, Edwards additionally noted that transaction fees awarded to miners give them an additional cushion against spot price incursions below production cost.<\/p>\n<p>&#8220;Historically, the electrical cost to produce a Bitcoin has represented a price floor in the Bitcoin market price,&#8221; another insight reads.<\/p>\n<h2>Mining shrugs off spot price moves this year<\/h2>\n<p>As Cointelegraph reported, miners are indeed voting with their wallets as BTC consolidates below $50,000.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report<\/em><\/strong><\/p>\n<p>Rather than selling, miners <em>en masse<\/em> have been\u00a0accumulating BTC more this month and last than during the highs.<\/p>\n<p>This speaks both to a healthy balance sheet and resolve over the future \u2014 fears of economic difficulties on the horizon are not currently weighing on the mining sector.<\/p>\n<p><em>Bitcoin hash rate chart. Source: Blockchain<\/em><\/p>\n<p>Going forward, current worst-case scenario estimates among well-known analysts foresee a BTC price floor no lower than $30,000.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-miners-can-take-fresh-20-btc-price-hit-before-capitulating-data-shows\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bitcoin (BTC) mining\u00a0business is bigger than ever at current price levels, and new data shows just how unlikely a mass miner sell-off really is. As noted by popular Twitter account @venturefounder on Jan. 14, even at $42,000, the BTC\/USD trading pair is around 20% above miners&#8217; cost price. Miner capitulation behind &#8220;worst&#8221; BTC price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1141,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-1140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1140"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1140\/revisions"}],"predecessor-version":[{"id":1142,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1140\/revisions\/1142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/1141"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}