Since the November peak in BTC’s price, bitcoin miner revenues have fallen. Miners have been in a difficult spot since November, when the price of BTC peaked. Many of them had to sell their BTC holdings to continue financing their operations. This was also true for last week when miner revenues were again in the red. There may be some light at the other end of the tunnel, however, as crypto market trends begin to shift.
Miner Revenues down 4%
Daily miner revenues have trended above $18 million for the past month but have continued to lose each week. This trend was ended last week when miner revenues fell by 4.03%. Average daily revenues dropped below $18 million. 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 sell-off of bitcoin miners in the space. To provide cash flow, miners had to offload more BTC as their profitability fell. Miners had already sold 25% of their holdings in June. And with prices still low, reports for July will show even more sales.
Bitcoin miners have been selling more bitcoins than they produce over the past two months. They sold over 100% of all the BTC produced in May. This number rose 400% when public miners sold 14,600 BTC in June. This was despite only producing 3,900 BTC. That represented 25% of their total holdings.
BTC drop to $22,700 | Source: BTCUSD on TradingView.com
Surprisingly fees per day increased by 12.61% last week. This brought the percentage of revenue from fees to 2.59%, an increase of 0.38% from the previous week.
Will the Bitcoin Rally help?
The bitcoin price has seen a recent rally and has reached one-month highs. Bitcoin had briefly touched $24,000, but then trended back down. The first half of this week was green for the digital asset.
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It is possible to predict that bitcoin mining will see an increase in revenues this week, as profitability is directly linked to the price. An increase of $22,000 in bitcoin price will result in more revenue for public bitcoin miners. The price trended around $19,000 most of last week.
The increase in daily miner revenues is expected to be under two-digits, despite the fact that the price has not recovered significantly. Notable is the fact that block space is in greater demand, which leads to higher transaction fees, which contributes to daily miner revenue.
Featured image taken from GoBankingRates. Chart taken from TradingView.com
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