"Is 'Miner Capitulation' a signal for a pump? VanEck: Bitcoin Computing Power plummets, bullish market is poised to take off."

The latest report from asset management company VanEck points out that recent Bitcoin Mining activities have significantly cooled down. If we refer to historical experience, it is likely to indicate that Bitcoin is about to welcome the return of long positions.

In a research report released on Monday, VanEck mentioned that reviewing market patterns since 2014, when Bitcoin experiences a decline in overall network hash rate, there is a 65% probability of positive returns in the following 90 days; conversely, when the hash rate continues to grow, the probability of positive returns is only 54%.

VanEck analysts pointed out that empirical data shows, “the decline in hash rate may actually be a bullish signal for long-term holders,” and described it as a contrarian indicator, often accompanied by “miner capitulation”—that is, when the price of coins drops, costs rise, and profit margins are compressed, miners with weaker financial structures are forced to shut down operations or even sell Bitcoin for survival.

Historically, this kind of “purge” often marks the formation of a market bottom, followed by a strong rebound.

VanEck pointed out that the current market situation perfectly aligns with the aforementioned trend. As of December 15, the overall Bitcoin network hash rate has declined by approximately 4% within a month, marking the largest monthly drop since April 2024. The report further notes that the longer the hash rate compression lasts, the more intense the future rebound is likely to be.

With the decline in coin prices, the profitability of the mining industry is being ruthlessly squeezed. Data from VanEck shows that for example, the current mid-range mainstream mining machine Antminer S19 XP, the “break-even electricity price” has drastically dropped from $0.12 per kWh at the end of 2024 to about $0.077 by mid-December.

The “break-even electricity price” refers to the highest electricity cost that miners can bear without incurring losses. A rapid decline indicates that mining profits are thinning, and only miners with lower electricity costs and better capital structures can continue to stay in the market.

As mining pressure increases, VanEck points out that long-term institutional buyers are gradually taking over, especially as “coin-hoarding companies” have accelerated their buying on dips in the past month.

According to the report statistics, from mid-November to mid-December, cryptocurrency reserve companies purchased approximately 42,000 Bitcoins, with a month-on-month increase of about 4%, raising the overall holding amount to approximately 1.09 million Bitcoins.

This is also the largest monthly institutional accumulation since mid-July to mid-August 2025 (when over 128,000 Bitcoins were added in a single month).

Looking ahead, VanEck believes that cryptocurrency reserve companies will gradually reduce the issuance of common stock (which dilutes equity) and instead raise funds through preferred stock, becoming the main source of capital for purchasing Bitcoin.

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Disclaimer: This article is only intended to provide market information. All content and opinions are for reference only and do not constitute investment advice, nor do they represent the views and positions of the blockchain community. Investors should make their own decisions and trades, and the author and the blockchain community will not bear any responsibility for any direct or indirect losses arising from investors' trades.
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Tags: VanEck Global Analysis Cryptocurrency Market Coin Price Investment Surrender Mining Bitcoin Miner Hashrate Market Trends