Historical data indicates Bitcoin may surpass 85k to offset mining expenses
Bitcoin miners have recently become the focal point in the cryptocurrency market as the pressure to sell their BTC holdings has increased, impacting the price of the asset. This selling activity has hindered Bitcoin’s progress towards breaking the $70,000 resistance.
Looking forward, data shared by crypto analyst Ali Martinez on June 15 indicates that miners continue to play a crucial role in influencing Bitcoin’s price and potentially driving it to new all-time highs.
Martinez revealed that Bitcoin’s average mining cost currently stands at $86,668. Historically, Bitcoin has consistently surged above this key level, serving as a strong bullish indicator for the cryptocurrency.
A chart provided by MacroMicro illustrates the historical relationship between Bitcoin’s average mining costs, market price, and the ratio between the two metrics over time. The chart shows that Bitcoin’s price has often exceeded mining costs, especially during bullish periods, such as in mid-2016 to early 2018 and leading up to 2021.
The ratio of average mining costs to Bitcoin’s price, calculated on a 30-day moving average, displays a cyclical pattern. Dips in the ratio correspond to periods when Bitcoin prices significantly surpass mining costs, often signaling further price surges.
With Bitcoin’s average mining cost at $86,668, the current market conditions suggest that BTC needs to reach this price level to cover mining expenses. This aligns with the consensus that Bitcoin is poised for growth in the coming months, potentially following a post-halving bull run.
If Bitcoin’s price aligns with mining costs, the cryptocurrency could see a 30% increase from its current valuation.
Bitcoin investors are eagerly anticipating triggers to break the current consolidation phase, with mining activity emerging as a key factor to monitor. Concerns have been raised about the increased selling by miners, indicating possible price capitulations.
During this period, Bitcoin briefly dropped below $67,000 before recovering to $66,563 at the time of writing, showing minimal gains on the daily chart.
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