According to data from Blockchain.comBitcoin miner revenue has halved in the last 30 days and is at 2020 levels. While miner revenue falls, hashrate (computing power) continues to rise.
In the month of June, the miners had revenues of $668 million, 26.3% less in the monthhowever, compared to October 2021, it represents a much larger drop of around 61%, according to the website The Block.
In the graph below we can see that the last few months miner revenues have been falling with no signs of recovery.
Income of miners in recent months
Bitcoin it lost around 30% of its value in June alone. Nevertheless, lost 70% of its value vs last record price of $69,000. One of the factors that affected the price of Bitcoin was the increase in US interest rates to curb inflation.
The correlation between bitcoin price and miner earnings is clear, so when the market is “down”, it not only affects investors, but miners as well.
Finally, the hashrate continues to increase, this indicates greater security for the network. Nevertheless, we are experiencing a phase of pessimism in the cryptocurrency market even though the fundamentals are showing to be stronger.
Miners selling their BTC
Cryptoquant has suggested that the cryptocurrency market is in a capitulation period by bitcoin miners.
Ki Young Ju, CEO of CryptoQuant, highlighted that there are two types of capitulation by Bitcoin miners. First it was the veteran miners who were selling bitcoins at a profit. While the second is the novice miners who sell at a loss.
The recent jump in the sale of Bitcoin by miners has affected the price of BTC. In a report, Cryptoquant mentioned that miner revenues are falling over time. While the mining difficulty registered an increase.
Blockworks Research also released their Bitcoin mining report called Bitcoin State of Mining.
This week’s report reveals that Bitcoin mining is under pressure due to the steady drop in the price of BTC.
The drop is causing problems for miners, since it has reduced its income at the same time that production costs have increased. All of this is putting pressure on the profitability of Bitcoin mining, which has fallen to levels not seen since October 2020, before the start of the last big bull run.
Currently, only miners with low energy costs and high performance equipment are mining profitably.
The problem of low profitability is giving rise to another problem: the dependence of mining on raising capital, which has recently been exhausted. Because of this, many miners are forced to sell bitcoins, changing their original “HODL” strategy.
All of this obviously keeps selling pressure high at a time when buying pressure is low.