Bitcoin (BTC) Price Analysis & Market Overview April 11: AI-Linked Bitcoin Miners Outperform Pure-Play Miners as Mt. Gox Refund Looms

Bitcoin (BTC) has shed by more than 10% in less than a week, dropping from a comfortable position above $66500 to around $61300 as the market is digesting the refund of assets from now-defunct exchange Mt. Gox.

Bitcoin price fell below $62,000 on Monday as the market digested news of refund preparations by now-defunct cryptocurrency exchange Mt. Gox.

Bitcoin dropped over 10% in less than a week, moving from above $66,500 to around $61,300 on Monday morning. The price of the world’s largest cryptocurrency dropped over 10% in less than a week. It had hit a record high of nearly $74,000 in mid-March amid interest in new spot exchange-traded funds tracking the cryptocurrency, but its price has since fallen.

Mt. Gox’s trustee will begin returning over 141,900 BTC, currently valued at around $8.7 billion, to creditors in July, according to a court filing. The exchange collapsed in 2014 after losing 850,000 BTC in a hack.

"While it's uncertain how much of the distributed BTC will be sold by creditors, we do not expect all or even most of the coins to be absorbed by the market in the short term," H.C. Wainwright analysts said in a note. "Many of these early investors in BTC have a 'hodl' mentality and very low cost bases."

Among other crypto highlights, shares of AI-linked bitcoin miners outperformed pure-play miners, rising by 11.5% compared to a 1.4% increase for the latter group. This follows several announcements, including a $150 million investment by Coatue in Hut 8 Corp (NASDAQ:HUT) via a convertible note to build data center infrastructure focused on AI. Two other public miners also disclosed expanded contracts with existing AI customers.

"AI contracts come with recurring, high-margin revenue streams that are not susceptible to BTC price fluctuations," the analysts added. "BTC miners are leveraging their infrastructure capacity to support AI compute, attracting new tech investors in the process."

Last Thursday, Nasdaq-listed software firm MicroStrategy (NASDAQ:MSTR) also disclosed an additional purchase of 11,931 BTC for $786 million, at an average price of about $65,900 per coin. With this latest acquisition, MicroStrategy's total holdings have increased to 226,331 tokens, now worth just under $14 billion. The largest corporate holder of bitcoin has invested over $8.3 billion in the original cryptocurrency since 2020.

In hardware news, Bitmain unveiled its latest Antminer S21 series rigs at the World Digital Mining Summit in Las Vegas. The air-cooled S21 XP boasts 270 TH/s of computing power with an efficiency rating of 13.5 J/TH, a 10% improvement over the S21 Pro. Bitmain also announced the S21 XP Hydro, a hydro-cooled model with 473 TH/s and an efficiency rating of 12 J/TH. These new rigs are slated to begin shipping in Q4 2024.

“Mining stocks declined by a more modest 1.3%. The network hash rate fell by 1.3% to 574 EH/s, and network difficulty remained virtually unchanged at 83.7T. Hashprices dropped 7.2% to $0.05/TH/day due to lower BTC prices,” H.C. Wainwright noted.

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