Since November’s peak in BTC, Bitcoin miners have seen their revenues plummet. Miners have been in financial trouble, and many of them had to sell BTC to continue financing their operations. Last week was no different, with miner revenue once more in the red. But, the market is changing and miners may see the light at the end.
Miner Revenues Drop 4%
Over the past month, average daily miner revenues rose to $18 million. But they continued losing each week. The trend ended with miner revenue falling by 4.03% last week, which caused average daily revenues below $18million. According to reports, miners had an average revenue of $17.7million. This is more than 60% less than its peak in November.
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This was followed by a sale of bitcoin miners in the area. Miners had to sell more bitcoins to make cash to continue their operations as profitability dropped. Miners sold 25% of their holdings in June. With the price of Bitcoin still low, July reports are likely to reflect even more sales.
Bitcoin miners have sold more bitcoins than they produced over the past two months. In May they sold more BTC than was produced. The number jumped 400% when the public miners, who had produced only 3,900 BTC in total, sold 14,600 BTC. This was 25% of their entire holdings.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Surprisingly the fees per day went up by 12.61% last Week, which increased the percentage of revenues derived from fees to 2.59%. This is a 0.38 increase over the week prior.
Can The Bitcoin Rally Be Helpful?
Bitcoin’s recent market rally has led to its price reaching one-month peak and reclaiming key technical levels. Bitcoin had briefly crossed above $24,000, before it trended back down. The first half of this week was green for bitcoin.
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It is possible to predict that bitcoin miners will see an increase in revenues this week, as profitability is directly linked to the value of the digital currency. A rise above $22,000, which is an increase from $19,000 last week will bring more income to public bitcoin miners.
The price has not recovered in a large way so the daily miner revenues are expected to stay below the double-digits. Also, it is important to remember that the demand for blockspace is higher, which means there are more transaction fees on network. This contributes more to daily miner revenues.
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