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02/09 13:34

Can Bitcoin Hold at $90K and Keep Miners from Drow

Can Bitcoin Hold at $90K and Keep Miners from Drowning?

Despite the high risk of Bitcoin miner capitulation, analyst James Van Straten believes the cryptocurrency can hold and mark $90K as a local price floor. According to him, the Hash Ribbon, a key indicator that tracks miner profitability and potential exits, was marked.

This hinted at BTC miner distress and a likely signal of a bottom for BTC, according to historical data. He said:

“The Hash Ribbon, which signals miner capitulation and usually marks a bottom, usually lasts about 30 days. The last time this happened was in October 2024.”

  



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Home > Bitcoin > Can Bitcoin Hold $90K and Keep Miners from Going Underwater?

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Can Bitcoin Hold $90K and Keep Miners from Going Underwater?

2 min read

Here's what to expect before accelerated miner capitulation as network difficulty prepares to rise.

  Published: February 8, 2025

Author: Benjamin Njiri

Edited by: Jibin Matthew George

Bitcoin Miner Capitulation Could Ease at $90K, Open New Buying Opportunities

The average cost of mining BTC was still below the price of the king coin at the time of publication

Despite the high risk of Bitcoin miner capitulation, analyst James Van Straten believes that the cryptocurrency could hold and mark $90K as a local price floor. According to him, the hash feed, a key indicator tracking miner profitability and potential exits, was marked.

This hinted at BTC miner distress and a possible bottom signal for BTC, according to historical data.  He said:

“The hash tape signaling miner capitulation, which usually marks the bottom, usually lasts for about 30 days. The last time this happened was in October 2024.”

  

Source: Glassnode

In most cases, the hash tape indicator also acted as a buying opportunity, as it coincided with the cryptocurrency’s lows. But will this trend repeat itself?

Will $90K Stop Bitcoin Miner Capitulation?

Straten added that despite the expected 4% Bitcoin difficulty increase on February 9, the king coin can still defend the $90K-$105K price range.

“The difficulty is expected to correct 4% to ATH on Sunday, which will increase the burden on miners. Rest assured that $90K is the bottom of this range.”

 Blockchain.com

For those unfamiliar, network difficulty (currently 110T units) refers to how difficult it is for miners to find a block (mine BTC). A 4% increase means that miners will have to use more computing power to mine the cryptocurrency. More broadly, this means upward pressure on the average mining cost.

As of February 6, the average BTC mining cost was $86.5K, according to MacroMicro. If the BTC price falls below the average mining cost, the average miner will be underwater and under a lot of pressure.

Historically, the Bitcoin price has always been above the average mining cost. So, despite the expected increase in difficulty and more pressure for miners to capitulate, a drop below the average mining cost could be a buying opportunity if BTC later rises.

 The royal coin was valued at $96,000 at the time of publication and could fall to lows of $91,000–$90,000 if bearish pressure persists.

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