Bitcoin miners are reportedly finding ways to mitigate the recent drop in prices by diverting their efforts to mining other cryptocurrencies, as stated by the CEO of CryptoQuant, Ki Young Ju. Ju explains that the hashprice of Bitcoin has reached an all-time low, potentially leading to a decrease in investments by mining companies. This situation has prompted them to explore other, more cost-effective proof-of-work (PoW) coins for the time being.

Hashprice refers to the anticipated value of 1 TH/s of hashing power per day and is used to measure how much a miner can anticipate earning from a given amount of hashrate. According to Ju, “Bitcoin hashprice hit an all-time low. Many mining companies slowed mining rig investments, with some switching to other PoW coins to hedge against market uncertainty… This doesn’t mean the end of the cycle. And they’re not long-term bearish; they’re just hedging and waiting for buy-side liquidity to recover, in my opinion.”

However, Ju acknowledges that this trend indicates a capitulation in miners, which is often a characteristic of a pre-Bitcoin bull run. At the time of writing, BTC is trading at $60,681. Recently, Ju pointed out that Ethereum’s (ETH) Market Value to Realized Value (MVRV) indicator was signaling the beginning of an altseason.

The MVRV indicator is utilized to determine whether a specific crypto asset is undervalued or overvalued, and it is the ratio of the market capitalization of Ethereum, or any other crypto asset, relative to its realized capitalization (the value of all ETH at the price they were bought). Ju stated, “We’re entering early altcoin season. ETH MVRV is rising faster than Bitcoin (BTC) MVRV, suggesting ETH market is heating up relative to its on-chain fundamentals. Given the current ETF situation, this might be an ETH-only season. Historically, when ETH surges, other altcoins tend to follow.” ETH is trading at $3,360 at the time of writing.

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