Bitcoin experienced a sharp drop below the $57,000 mark, causing concern among investors about potential market volatility and its impact on miners. Speculators continued to sell off their Bitcoin on Thursday morning, leading to the cryptocurrency dipping below $57,000 for the first time since February. Although Bitcoin quickly rebounded above $57,000, the sudden plunge could indicate weakness, affecting sentiment among retail traders.
According to CryptoQuant, crypto beginners who purchased Bitcoin in the past six to three months have begun moving their coins during the recent drop, creating increased selling pressure. Approximately $2.4 billion worth of Bitcoin controlled by these beginners has started moving, suggesting their intention to sell at current market prices.
Miners are also facing challenges as the hashprice, a metric representing miner revenue per terahash, has rapidly dropped. Hashrate Index reported that the hashprice is approaching its all-time low, a level last seen during the bear market. Currently at $44.69, the low hashprice may prompt some miners to sell off their reserves to cover operational expenses.
In an interview with crypto.news, CryptoQuant’s head of research Julio Moreno warned that a miner capitulation could occur if Bitcoin prices do not significantly recover during the summer. The hashprice, which reflects the average miner revenue per hash, has been consistently hitting new lows since the latest halving. As of now, Bitcoin is trading at $57,336, according to data from crypto.news.