Decline In Bitcoin Miner Revenues Suggests More Sell-Offs May Follow
July 07 2022 - 7:00PM
NEWSBTC
Bitcoin miner revenues have been in decline since the bear trend
began and this has led a good number of miners to sell their BTC
holdings in order to keep their operations afloat. However, the
expectation that the bear market would soon resolve and miners
would once again be in the green has since gone out the window.
With miner revenues continuing to plummet, miners may have to
resume selling off their holdings to keep up with the market. Miner
Revenues Fall For the past week, there has been no change in the
downtrend in miner revenues. On-chain metrics show that it was down
0.59% from the prior seven days bringing the total daily miner
revenues to $18.62 million. Mostly, it has remained flat during
this time and other metrics have dived further into the red during
this time. Related Reading | Institutional Investors Remain
Bearish As Short Bitcoin Sees Record Inflows An example is the fees
per day culled by miners. It was down 10.55% in the same time
period, one of the highest declines recorded in this time period.
With fees per day being so low, the percentage of the daily miner
revenues which it makes up is also down, now sitting at 1.50%.
Additionally, the daily transaction volumes are also down, which
explains the decline in fees per day realized. This was down 9.75%,
although transactions per day had seen some growth. It rose 1.96%
in the same time period and is now at 248,071 per day. Average
transaction volume has also followed the decline in network
activity with an 11.46% decline. This now stands at $16,333.
Bitcoin Miners Selling Bitcoin? Over the course of the last several
months, miners have seen their cash flow plummet. These miners
still have outstanding debts from machine orders that they had made
during the bull market of 2021 but have not been profitable enough
to keep their mining activities going. What had resulted from this
was a sell-off among bitcoin miners. Most prominent of these have
been the sell-offs from top public bitcoin miners such as Marathon
Digital and Riot Blockchain. In June, it was reported that these
public miners had had to sell off more BTC than they had produced
in the space of a month. BTC close to test $21,000 | Source: BTCUSD
on TradingView.com Most recently, the news of another bitcoin miner
dumping its holdings emerged. This time around, Core Scientific had
announced that it had sold the majority of its BTC in a monthly
update post. It realized a total of $167 million from the sale of
7,202 BTC. Following this, the miner’s bitcoin holdings now sit at
1,959 BTC. Related Reading | SEC Still Against Spot-based
Bitcoin ETFs. Is There A Light At The End Of The Tunnel? This trend
was expected as soon as the price had begun to drop. However, with
no recovery in sight, it is expected that more miners will come
forward to sell their BTC. 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. Featured image from BBC, charts from
TradingView.com Follow Best Owie on Twitter for market insights,
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