When Will Bitcoin Finally Rebound from Its Recent Slump?
The post When Will Bitcoin Finally Rebound from Its Recent Slump? appeared on BitcoinEthereumNews.com.
Bitcoin’s recovery may depend on the exit of inefficient miners and the stabilization of the hash rate. Willy Woo links current market trends with Bitcoin’s potential rebound post-halving and summer market lulls. Bitcoin’s [BTC] trajectory in 2024 has been marked by significant volatility, Despite reaching an all-time high of $73,737 earlier in the year, Bitcoin’s value has significantly retreated, currently standing around $64,625. This decline which is approximately 12.4% from its peak has sparked discussions among market analysts about the potential for a rebound. BTC to rebound soon? Willy Woo, a renowned cryptocurrency analyst, took to social media, X, to discuss the pivotal factors that might signal the beginning of Bitcoin’s recovery. Central to Woo’s analysis was the phenomenon of miner capitulation, which refers to the exit of less efficient miners from the market due to unprofitability. According to Woo, the price recovery for Bitcoin could start once these weaker miners have exited the market, allowing the hash rate—a measure of the total computational power used in mining and processing—to stabilize and recover. Notably, miner capitulation occurs when Bitcoin’s halving—a pre-programmed reduction in the rewards given to Bitcoin miners—renders old hardware or high-cost operations unfeasible, pushing inefficient miners towards bankruptcy. As explained by Woo, this process is painful but necessary for the market’s long-term health, as it purges inefficiencies and consolidates mining operations to more capable participants. These dynamics are critical as they reduce the pressure from constant selling by miners needing to cover operational costs, potentially paving the way for price stabilization and subsequent increases. Source: Willy Woo on X Historically, post-halving periods have been followed by significant price increases after initial volatility. Woo draws parallels with previous cycles in 2017 and 2020, noting that current market conditions mirror these earlier phases but with a delayed recovery. Particularly, Woo…
Filed under: News - @ June 22, 2024 9:26 am