Bitcoin (BTC) miners are currently at the forefront of the crypto market due to the increasing selling pressure on their BTC holdings, which has impacted the asset’s price. This selling activity has been a significant factor in preventing Bitcoin from reaching the $70,000 resistance level.
Looking ahead, data shared by crypto analyst Ali Martinez on June 15 suggests that miners will continue to play a crucial role in influencing Bitcoin’s price and potentially driving it to an all-time high.
According to Martinez, Bitcoin’s average mining cost is currently $86,668. Historically, Bitcoin has consistently surged above this critical level, serving as a strong bullish indicator for the cryptocurrency.
Martinez stated, “Bitcoin’s average mining cost is currently at $86,668. And guess what? Historically, $BTC always surges above its average mining cost.”
A chart from MacroMicro provides a detailed visualization of Bitcoin’s average mining costs, market price, and the ratio between these two metrics over time. The data shows that Bitcoin’s average mining costs and price have generally moved in tandem, with the cryptocurrency’s valuation often exceeding mining costs, especially during bullish phases. For instance, from mid-2016 to early 2018, Bitcoin’s price significantly surpassed mining costs. Similar patterns were observed in the periods leading up to 2021 and mid-2023.
The chart also shows the average mining costs to Bitcoin’s price ratio smoothed over a 30-day moving average (MA), revealing a cyclical pattern. Dips in this ratio correspond to periods when Bitcoin prices significantly outstrip mining costs. Historically, these dips have often preceded further price surges, reinforcing that mining costs are a critical support level for Bitcoin’s market price.
With Bitcoin’s average mining cost at $86,668, the current market scenario suggests that BTC needs to aim for this price level to cover mining expenses. This data aligns with the prevailing market consensus that Bitcoin is poised for further growth in the coming months, likely coinciding with the post-halving bull run. If Bitcoin’s price aligns with mining costs, the cryptocurrency could rally 30% from its current valuation.
Bitcoin investors are looking for possible triggers to help the asset exit the current consolidation phase, and mining is emerging as a key catalyst. There have been concerns about the growing selling activity by miners, which signals potential price capitulations. Recently, Bitcoin briefly lost support at $67,000, dropping to as low as $65,000. At the time of writing, Bitcoin was valued at $66,563, representing minimal gains of almost 0.5% on the daily chart.
