Bitcoin

Bitcoin (BTC) miners are once again at the forefront of the cryptocurrency market, influencing price dynamics with their selling activity. This selling pressure has been a significant factor in preventing Bitcoin from breaking through the $70,000 resistance. However, recent data suggests that miners will play a crucial role in driving Bitcoin’s price to new heights, according to <a href="https://finbold.com/history-suggests-bitcoin-could-hit-new-high-above-85k-to-cover-mining-costs/" rel="noopener noreferrer nofollow">Finbold</a>.
Crypto analyst Ali Martinez highlighted on June 15 that Bitcoin’s average mining cost currently stands at $86,668. Historically, Bitcoin’s price has consistently surged above its average mining cost, indicating a strong bullish trend. Martinez stated, “Bitcoin’s average mining cost is currently at $86,668. And guess what? Historically, $BTC always surges above its average mining cost.”
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A chart from MacroMicro supports this claim, showing the correlation between Bitcoin’s average mining costs, its market price, and the ratio between these metrics over time. The data reveals that <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> often exceeds mining costs during bullish phases. For example, significant price surges above mining costs were observed from mid-2016 to early 2018 and in the periods leading up to 2021 and mid-2023.
The 30-day moving average (MA) of the mining cost-to-price ratio also shows a cyclical pattern, with dips often preceding further price surges. This reinforces the idea that mining costs serve as a critical support level for Bitcoin’s market price.
With the current average mining cost at $86,668, Bitcoin must aim for this level to cover mining expenses. This aligns with the prevailing market consensus that Bitcoin is poised for further growth, likely driven by the post-<a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> bull run. If Bitcoin’s price reaches its average mining cost, it could rally by 30% from its current valuation.
Bitcoin investors are keenly watching for potential triggers to help the asset break out of its current consolidation phase. Mining activity is emerging as a key catalyst. Recent concerns about increased selling activity by miners have signaled potential price capitulations, briefly causing Bitcoin to drop below $67,000 and reach lows of $65,000. As of press time, Bitcoin is valued at $66,563, representing a minimal daily gain of almost 0.5%.

Bitcoin Poised to Surge Above $85k as Mining Costs Dictate Market Movements

Ultramining_Eng

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