CryptoQuant CEO believes bitcoin miners can trigger bull market
CryptoQuant CEO Ki Young Ju believes the bitcoin (BTC) miners could trigger a bullish movement, but it will require some investments from top TradFi and tech companies in the United States.
This optimistic belief comes while the average BTC mining difficulty reached an all-time high (ATH) of 37.59 trillion on Jan. 16 and has been consolidating until today, according to data provided by Ycharts.
Moreover, Ju believes that one of the important points for the new mining difficulty ATH is that the top US miners have been processing with all of their energy to “repay the financing debt owed on equipment it was leasing.”
According to Ju’s data, the Foundry USA pool has the largest hash rate dominance, a 42% accumulation of the “total hash rate.” The second-largest pool remains AntPool with a 16.7% authority, while the Binance pool gets the third rank with an 11.4% stack of the total hash rate.
“Some mining companies who have used the Foundry USA pool are filing for Chapter 11 bankruptcy or reporting significant losses for the past few months.”
Ki Young Ju pointing to the FTX’s ripple effect.
Talking about the recent collapses of top crypto mining companies, Ju says that small to mid-sized firms would try to sell all their equipment and bitcoin reserves. “But this time might be different,” CryptoQuant CEO added.
He stated that, currently, the top U.S. mining companies have become “institutional miners” and would need to be treated differently than small to mid-sized firms. Ju says that top TradFi and tech companies can acquire the bankrupt BTC miners with their crypto reserves at a “discount.”
“We never know whether someone(s) would acquire the bankrupted crypto companies and their assets, but once it happens, it will remove the systemic risk significantly.”
Ki Young Ju stated in the Twitter thread.
On the other hand, the chief commercial officer at Crypto Finance Group, Patrick Heusser, believes that top TradFi and tech firms are still looking for traditional ways of investing.
Ju and Heusser’s opinions come while the bitcoin miners’ selling pressure dropped to a three-year low, reaching the 2019 levels. As crypto.news wrote earlier, below 100 BTC are currently being sold per week, while the Bitcoin Puell Multiple rose from 0.61 on Jan. 1 to 0.92 at the time of writing.
