According to on-chain analyst and trader Ali Martinez, the reduction in the profitability of Bitcoin mining due to the halving in April 2024 led to a wave of capitulations among miners.

Ali Martinez presented a graph of the average cost of mining one BTC – on June 12, the figure reached $74,600. On the same day, the first cryptocurrency was around $68,000.

The analyst believes that the graph points to the fact that it has become unprofitable for many miners to mine Bitcoin, and only large companies remain profitable. They have access to cheap electricity and have significant financial resources, built up before the block reward was reduced from 6.25 BTC to 3.125 BTC.

The trader drew attention to the Hash Ribbons indicator, used to determine the global price bottom of Bitcoin. Since the beginning of May 2024, it shows that miners are disconnecting their equipment from the network because their costs for equipment maintenance and electricity exceed the price of the bitcoin mined.

Earlier, Factor CEO Peter Brandt suggested that a massive sale of bitcoins by mining companies would lead to a decrease in the market value of the first cryptocurrency to $48,000.