Bitcoin price will bounce back when weak hands give up and hashrate improves

Bitcoin (
BTC
) has been on a downward trajectory for more than two weeks and is currently trading 13.8% below its all-time high of $73,835,
which was reached on March 14
. Analysts are of the opinion that BTC needs to recover its hashrate and shake off “weak hands” in order to put an end to the downward trend.
Independent analyst Willy Woo pointed out that the price of Bitcoin would only see a rebound once “weak miners die” and the hashrate bounces back.
“This situation will go down in history as it is taking a considerable amount of time for miner capitulation post-halving,” Woo
stated
in a post on the X social media platform on June 21.
Miner capitulation is a theory that suggests that miners will turn off their hardware and sell their coins if Bitcoin falls below a certain price and mining becomes unprofitable.
When Bitcoin “sheds weak hands,” it means “inefficient miners running old hardware and high costs go into bankruptcy. While others are forced to upgrade hardware that’s more efficient” because their revenues have been halved, the analyst
explained
. “Both cases force miners to sell their BTC to pay for losses or hardware upgrades.”
Woo added that capitulation is taking longer during the current cycle, likely due to profit boosts. “Thanks to ordinal inscriptions.”
He
shared
a graph showing that the hashrate recovery is taking longer compared to previous cycles.


Bitcoin hashrate recovery. Source:
Willy Woo
In comparison, the hashrate took 24 days to recover during the 2017 cycle and only 8 days in 2020.
Bitcoin hashrate refers to the number of attempts made per second to solve the mathematical puzzle that validates Bitcoin transactions.
When the Bitcoin hashrate rises, 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,”
stated
fellow analyst Ali Martinez in a post on X on June 15.


Average BTC mining costs. Source:
Ali Martinez
Also weighing in on when the Bitcoin price is likely to end the downtrend is fellow analyst Mr. Anderson who said it will take a “shake out,” which takes place “when price drops sharply, causing less committed traders to sell.”
“The goal is to trigger panic and increased selling,” he
explained
in a post on X on June 18.
This article does not offer investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.