Bitcoin price spikes occur when ‘weak hands’ hold and hashrate recovers.

Bitcoin (BTC) has been in decline for over two weeks and is now trading 13.8% below $73,835. Declining trend.

Independent analyst Willy Wu says Bitcoin's price will recover when “weak miners die” and the hashrate recovers.

“This one is for the record books as it takes a long time for mining post-halving,” Woo wrote in a June 21 post on X's social media platform.

It's a theory that miners will turn off their hardware and sell their coins if Bitcoin falls below a certain value and mining becomes unprofitable.

When Bitcoin “flows into weak hands,” the analyst explained, this means “inefficient miners running old hardware and high costs go bankrupt. Others are forced to upgrade to more efficient hardware” because their earnings are cut in half, the analyst explained. They force you to sell. “

“After this is over and the sale is over, only the strong will be left and they will be waiting for a higher price.”

Wu added that capitalization is taking longer in the current cycle, likely due to rising profits. “Thanks for the regular posts.”

He shared the following graph showing that the recovery of Hashret is taking longer compared to previous cycles.

In comparison, it took 24 days for the tide to recover in the 2017 cycle and only 8 days in 2020.

“And today. Still waiting for the miners to actually die. 61 days so far.”

Bitcoin hashrate refers to the number of attempts per second to solve the mathematical puzzle that verifies Bitcoin transactions.

When Bitcoin's hashrate is raised, more computing power is used, which increases energy costs and lengthens verification and transaction times.

“Bitcoin's average mining cost is currently at $86,668,” fellow analyst Ali Martinez said in a June 15 post on X.

“Historically, $BTC has always exceeded the average mining cost!”

Also weighing in on when bitcoin's price could end its decline, Mr. Anderson said the analyst would pick up a “shock” that would see “prices drop sharply and cause less committed traders to sell.”

“The goal is to panic and increase selling,” he explained in a June 18 X post.

“After the weak traders exit, the price often stabilizes or recovers as strong traders buy at lower prices.”

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.