According to CryptoQuant, published 5 July, the Bitcoin mining world is in a similar position to late in 2022 after the FTX crash, with profits running low again, and sell-offs continuing to put pressure on miners, which is leading to action. Bitcoin has fallen 13% from $68,791 to $59,603, putting pressure on miners to shutter part of their operations and sell the Bitcoin they had set aside to help cut costs and survive until profitability returns. As a result, there has been a 7.5% drop in the hashrate, marking a low seen not since the peak on 27 April.
Because of the fourth Bitcoin halving on 14 April at the end of the month, miners’ income had decreased dramatically ever since, so much that, based on data from the blockchain.com website that tracks the income of the Bitcoin network, in the past two months, the daily revenue was 63 per cent lower than it was then, due to the lower block rewards and the higher transaction fees. Daily mining income had went down to $29 million on 8 June from $79 million on 8 March, and transaction fees accounted for only 3.2 per cent of the daily total, which is the lowest since 8 April.
Lower revenues and forced liquidation for basic survival has forced miners to begin selling off their own Bitcoin reserves – and whales and at least some governments have been selling, too: Bitcoin prices dipped to a four-month low of $53,499 on 5 July. As the finance company Cantor Fitzgerald suggests, if Bitcoin prices fall below $40,000, some of the world’s largest Bitcoin mining companies will be forced to shutter their operations.
Source: vnexpress.net
