BTC falls below $20,000: When will the bear market end as miners sell coins to survive?

After ups and downs, Bitcoin fell below $20,000 again since June 23.

In the bear market, the cryptocurrency market is struggling to survive.

Shutting down machines and selling coins, miners are having a hard time

With hash rates remaining at all-time highs and BTC hovering around $20,000, miners are struggling to break even.

Intheblock data shows that miner outflows have increased significantly since June 12, indicating that they are moving funds to exchanges for selling.

Based on the current situation, calculated at $0.06 per kilowatt-hour electricity fee, some mining machines including the Whatsminer M10 series, M21S, Avalon 1066 Pro, etc. have reached the shutdown price; the Ant T17 series is on the verge of shutdown.

Some mining machines shut down the price of coins

A JPMorgan strategy team led by Nikolaos Panigirtzoglou recently released a report saying that if Bitcoin miners' profitability fails to improve, they will choose to continue selling Bitcoin in order to meet ongoing costs or deleverage, and this situation may continue until the third quarter of this year.

Currently, pressures such as soaring global electricity costs and the overall decline in the crypto market are hitting the profitability of crypto mining companies. Miners are trying to increase profits by cutting costs and selling some Bitcoin. In addition, Bitcoin miners are facing tremendous pressure from creditors and other counterparties. Miners who obtain funds through highly leveraged loans may even trigger a larger-scale chain reaction, leading to the bankruptcy of cryptocurrency lending service providers and hedge fund companies.

When will the bear market end?

In the face of the bear market, 21 Shares AG (21Shares), an issuer of cryptocurrency trading platform exchange products (ETPs), announced the launch of the Crypto Winter Suite, a product to help investors survive the bear market, designed to meet the needs of investors who are seeking to buy on dips and generate the greatest potential long-term returns. The first investment product introduced in the suite is 21Shares Bitcoin Core ETP (CBTC), which will provide low-cost Bitcoin exposure and is currently the lowest-cost Bitcoin trading platform trading product in the European market, with a fee rate of only 0.21%.

Despite this, the market's biggest concern is still when the bear market will end.

FTX founder SBF tweeted that the crypto bear market will improve due to its "suddenness."

Binance founder CZ said that although people now think that the price of Bitcoin at $20,000 is low, if people were told four years ago that Bitcoin would reach $20,000 in 2022, they would be very happy, and Bitcoin may remain below the historical high of $69,000 in the next two years. CZ also said that considering the price drop from the historical high of $69,000 to the current $20,000, it may take some time to recover. It may take months or years. But no one can predict the future.

Mark Cuban, owner of the NBA’s Dallas Mavericks, said the cryptocurrency bear market won’t end unless people focus more on practical applications.

Mark Cuban said that the market has not yet bottomed out. More focus on applications with utility will pull the cryptocurrency market out of the downturn. Given that there are many applications currently focused on financial technology or collectibles, the launch of applications focused on business will be one of the events that will trigger a market reversal. He also believes that mergers between different protocols and blockchains will eventually see the consolidation of the crypto industry because "this is what happens in every industry."

American rapper Snoop Dogg recently talked about the current "crypto winter" in an interview with CNBC. He said: "Every great industry has a recession. Alcohol, tobacco, clothing, food... and other industries you can think of have experienced depressions. This bear market will eliminate those who should not enter the crypto field and abuse the opportunities of the crypto market, and then it will bring great business. The crypto industry will also move forward. When the bull market comes back, only great things will remain. I know that NFT has a great chance to shine in the music industry, because sooner or later record companies will enter the market, and musicians will also understand that it is better to put their works on the blockchain."