Miner capitulation behind “worst” BTC price dips
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, reached new all-time highs this week. Those concerned that a fresh BTC price dip could pressure miners into selling received fresh assurances via data covering how much BTC/USD should trade at for them to break even.
The breakeven point currently stands at $34,000. The worst dips in Bitcoin’s history were due to miners capitulation in December 2018 and March 2020, when BTC fell below production costs, it is at risk for miner capitulation. Current production cost is $34,000, 20% below current price.
Miner production cost indicator
Bitcoin production cost indicator from Charles Edwards, CEO of asset manager Capriole, revealed that the breakeven point currently stands at $34,000. The worst dips in Bitcoin’s history were due to miners capitulation in December 2018 and March 2020, when BTC fell below production costs, it is at risk for miner capitulation. Current production cost is $34,000, 20% below current price.