Bitcoin miner revenue has been declining since the bear trend started. Many miners have had to sell BTC to stay afloat. It was expected that the bear markets would eventually end and that miners will once more be profitable. To keep pace with market conditions, miners could have to reconsider selling their miner holdings as revenues continue to drop.
Miner revenues fall
There hasn’t been any change in the trend in mining revenue declines over the past week. The total daily miner revenues fell 0.59% in the past seven days according to on-chain metrics. It’s remained mostly flat throughout this period and other metrics have fallen further into red.
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One example of this is the daily fees culled from miners. In the same period it was at 10.55%, the lowest ever recorded. The percentage of daily mining revenues it contributes is now at 1.50%, due to the low fees.
The daily transaction volume is also decreasing, explaining the decrease in fees per day. Even though transactions per day were increasing, this was still down 9.75%. This increased by 1.96% over the same period, and now stands at 248,071 transactions per day.
The decline in network activity has seen an increase in average transaction volume, which fell 11.46%. It now stands at $16,333.
Bitcoin miners sell Bitcoin
In the recent months miners have witnessed their cash flow drop over the years. These miners are still owing machine orders from the bull markets of 2021, but they haven’t been able to make enough profit to sustain their mining business. The result was a bitcoin miner sell-off.
The most prominent examples of this are the sales by top bitcoin miners like Marathon Digital and Riot Blockchain. According to reports, these top public bitcoin miners sold off more BTC in June than they produced over the course of one month.
Source: BTCUSD at TradingView.com| Source: BTCUSD on TradingView.com
Recently, news broke that another bitcoin miner had sold its assets. Core Scientific announced in its monthly update that the company had sold most of its bitcoins. From the 7,202 BTC sale, Core Scientific made $167 Million. Following this, the miner’s bitcoin holdings now sit at 1,959 BTC.
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As soon as the price began to fall, this trend was anticipated. It is likely that miners will continue to offer their BTC for sale, even though there has been no sign of a recovery. What’s more, these are reports from public miners and there’s no way to tell how much BTC private miners have had to dump.
Charts from TradingView.com, featured image by BBC
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