Bitcoin Mining Companies' Revenues Are Falling, But They're Not Selling Their Assets – What Does This Mean Historically?
Cryptocurrency analytics firm Alphartal has provided an interesting analysis of the Bitcoin mining sector.
The report found that miners continue to hold onto their Bitcoin holdings despite unusually low profitability.
Overall transaction fees on the Bitcoin network have fallen to their lowest level since 2012. This is because activity on the network has been extremely low in the current cycle, which has significantly reduced miners' income.
Despite the recent decrease in hashrate, there have been no changes to the network difficulty yet. This delay further reduces miners' profits and makes it difficult to achieve balance in the network.
The Bitcoin network is experiencing the largest fluctuations in hashrate in its history, which is believed to be due to some major mining companies shutting down their ASIC machines, citing decreased revenue and reduced demand for the network.
Despite the difficult conditions for mining, the fact that miners have not yet sold out of their reserves is considered a positive sign. According to Alphartal, a number of mining pools may have reduced their activity in line with the decline in global network usage. With Bitcoin trading above $107,000, it is assumed that miners are redistributing their computing power depending on current demand.
According to the analytics company, in previous cycles, miners tended to sell their holdings during periods of rapid price growth and increased network activity. However, both of these factors are currently at low levels, which may indicate that the market is in a “correction” phase rather than a “capitulation.”
*This is not investment advice.
Source: cryptonews.net
