A recent study by a Wall Street institution has revealed an overlooked truth: the recent drop in Bitcoin isn’t just about market sentiment—there’s a more direct reason. High electricity prices have pushed a group of high-cost miners to the brink, and unable to hold on, they’ve started selling coins to survive.

In theory, a decrease in hash rate should make life easier for the remaining miners. But with the current price still below the production cost line, nobody’s having it easy.

So how should we view this? The market is actually undergoing a round of natural selection. The exit of weaker miners is, in the long run, a healthy signal. Don’t panic just because you hear the words “selling pressure.” Institutions lowering their cost expectations at this time is actually a sign that they’re looking for an entry point.

Now is definitely not the time to follow the herd and sell out of fear. Fluctuations in electricity prices and changes in miner costs are just one dimension of observing a market bottom. What retail investors should do now is:

- Don’t chase the highs or panic sell—the selling pressure from miners will eventually be absorbed
- Watch if Bitcoin is forming a bottom, especially how it performs after hash rate recovers
- If you’re holding coins, don’t scare yourself out of the market while institutions are testing the bottom

Sharp drops are normal in a bull market; it’s the bear market that drags on endlessly. Right now, the market is clearing out high-cost players, and only those who can endure will be the winners in the end. If you can stay calm, you’ll have the chance to laugh last. In the crypto world, those who can read the market signals are the ones who truly make money.