VanEck: Recent capitulation-style selling by Bitcoin miners may indicate that the bottom is near.

According to Odaily Planet Daily, Bitcoin's hashrate dropped 4% in the month ending December 15th, and miner capitulation is historically a bullish contrarian signal. Matt Sigel, Head of Crypto Research at VanEck, and Patrick Bush, Senior Investment Analyst, pointed out that since 2014, the probability of a positive 90-day forward return for Bitcoin when the current hashrate declines over the past 30 days is 65%. Bitcoin is currently trading at $88,400, nearly 30% lower than its all-time high of $126,080 on October 6th. Furthermore, the break-even electricity price for Bitmain S19 XP miners has decreased from $0.12/kWh in December 2024 to $0.077/kWh. Analysts suggest the hashrate decline may be driven by the closure of approximately 1.3 gigawatts of mining capacity in China, with some electricity potentially being diverted to meet AI demands. Currently, 13 countries, including Russia and Japan, still support Bitcoin mining.