As Bitcoin price drops below $57,000, concerns have been mounting among investors about potential market volatility and its impact on miners.
On Thursday morning, speculators continued their selling pressure, forcing Bitcoin (BTC) below $57,000 for the first time since February. At the time of writing, Bitcoin is trading above $57,000, but its previous rapid decline could signal weakness, which could weigh on retail trader sentiment.
Blockchain research firm CryptoQuant noted that crypto newbies — who have bought BTC over the past three to six months — have begun moving their coins amid the decline and “increasing selling pressure.” According to the platform’s data, DataAbout $2.4 billion worth of bitcoins controlled by crypto newbies have started moving, likely indicating their intention to sell at current market prices.
Market turmoil could also be exacerbated by miners, who are facing a rapid decline in hashrate, a measure of miners’ revenue per terahash. Cryptocurrency mining analytics firm Hashrate Index male The hash mark amid the Bitcoin crash is “scratching all-time lows,” a level last seen during the bear market. As of this writing, the hash rate is at $44.69, which could prompt some miners to liquidate their reserves to cover operating expenses.
In an exclusive interview with crypto.news in May, CryptoQuant’s head of research, Julio Moreno, noted that the market “is likely to see a capitulation from miners if prices don’t recover significantly over the summer,” adding that the hashrate (the average revenue miners generate per hash) has been “making new lows” repeatedly after the recent halving. At the time of writing, Bitcoin is trading at $57,336, according to data from crypto.news.