Bitcoin miners are reportedly taking steps to protect themselves against the recent drop in prices by turning to mine other cryptocurrencies, as stated by the CEO of CryptoQuant. Ki Young Ju explains that Bitcoin’s hashprice has reached an all-time low, potentially leading to a decrease in investments for mining companies and causing them to explore other, more affordable proof-of-work (PoW) coins to mine for the time being. Hashprice refers to the anticipated value of 1 TH/s of hashing power per day and aims to measure how much a miner can expect to earn from a given amount of hashrate.

Ju mentioned, “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 indicate the end of the cycle. And they’re not long-term bearish; they’re simply 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 generally a sign of an upcoming Bitcoin bull run. At the time of writing, BTC is trading at $60,681.

Ju also recently pointed out that Ethereum’s (ETH) Market Value to Realized Value (MVRV) indicator was signaling the start of an altseason. The MVRV indicator is used to evaluate whether a specific crypto asset is undervalued or overvalued, and it represents 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).

“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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