Bitcoin Miners Reduce Selling Pressure as Profitability Rises
Bitcoin (BTC) miners are experiencing a decrease in selling pressure recently due to the improved profitability in their operations. The recovery of the Bitcoin network hashrate following the cryptocurrency’s surge to the $69,000 range has contributed to this positive trend.
Hashrate Recovery and Price Rally
After reaching its lowest level since February 28 on July 9, the Bitcoin hashrate has rebounded by 6% to 604 EH/s. Analysts at CryptoQuant have noted that a hashrate recovery typically accompanies a sustained rally in bitcoin’s price. This increase in hashrate indicates a positive outlook for the cryptocurrency.
- Bitcoin hashrate improves by 6% to 604 EH/s.
- Hashrate recovery is linked to a potential price rally for BTC.
Enhanced Miner Profitability
Alongside the recovery in hashrate, miners are experiencing improved profitability in their operations. The Miner Profit/Loss Sustainability metric shows that miner revenues have surged, reaching levels not seen since the Bitcoin halving in April. This growth in profitability suggests that miners may hold onto their BTC holdings rather than selling them.
- Miners’ profitability reaches pre-halving levels.
- Increased revenues reduce selling pressure on BTC.
Rise in Daily Miner Revenues
Bitcoin’s recent price rally has resulted in a significant increase in daily miner revenues, rising by approximately 50%. Daily revenues have surged from a low of $22 million earlier in the year to around $32 million presently. This rise in revenues has further supported the recovery of Bitcoin’s hashrate.
- Daily miner revenues grow by 50% following BTC rally.
- Higher revenues contribute to hashrate recovery.
Bigger Miners Accumulating BTC
Despite the overall positive trend, larger Bitcoin mining entities have been accumulating more BTC while smaller miners have been selling off their holdings. The total balance of large miners has increased from 61,000 BTC to 65,000 BTC since the beginning of the year, whereas small miners have reduced their balance from 59,000 BTC to 51,000 BTC during the same period.
- Large miners increase BTC holdings, small miners sell.
- Balance shifts between larger and smaller mining entities.
Caution for Miners
CryptoQuant has cautioned that miners should be wary of remaining at “depressed levels” with regard to fees, as their profitability is closely tied to the price of bitcoin. Any significant fluctuations in the cryptocurrency’s price could impact miners’ operations and revenues.
Hot Take: Bitcoin Miners Benefit from Improved Profitability
As Bitcoin miners enjoy enhanced profitability and a recovery in the network hashrate, the selling pressure on BTC from this group of market participants may lessen in the near future. The positive trends in miner revenues and hashrate indicate a more stable and potentially lucrative environment for Bitcoin mining operations.
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