Revenues from Bitcoin miners have fallen since the price of BTC peaked in November. This put miners in a difficult situation, forcing a good number of them to sell their BTC holdings in order to continue funding their operations. It was the same last week, when the income of miners was again in the red. However, as the tide begins to change in the crypto market, there may be light at the end of the tunnel for miners.
Miner revenue down 4%
Over the past month, daily revenue for miners topped $18 million, but continued to see losses as the weeks went by. Last week ended that trend when miner earnings fell again, this time by 4.03%, dropping average daily earnings below $18 million. Reports show that miners averaged $17.7 million in revenue, more than 60% below their peak in November.
What followed was a sale of bitcoin miners across space. As profitability fell, more BTC had to be offloaded by miners to provide cash flow to their operations. In June alone, miners had sold 25% of their holdings, and with prices remaining low, July reports are expected to show even higher sales for the month of July.
Over the past two months, bitcoin miners have sold more BTC than they produced. For the month of May, they had sold over 100% of the BTC produced. That number jumped 400% in June when public miners sold around 14,600 BTC despite only producing a total of 3,900 BTC, which is 25% of their entire holdings.
BTC drops to $22,700 | Source: BTCUSD on TradingView.com
Surprisingly, fees per day increased by 12.61% last week, bringing the percentage of revenue from fees to 2.59%, an increase of 0.38% from the previous week.
Will the Bitcoin Rally help?
The recent market rally has seen bitcoin price regain key technical levels and hit one-month highs. The digital asset had even briefly topped $24,000 before heading back down, and the first half of the week had been green for the digital asset.
Related Reading | Why Bitcoin Must Beat $25,500 to Establish a Bull Rally
Since the profitability of bitcoin mining is directly linked to the price of the digital asset, it is safe to assume that there could be a slight increase in miner earnings for this week. Since the price has been hovering around $19,000 for most of the past week, a rise above $22,000 will allow public bitcoin miners to earn more revenue from their mining operations.
However, given that the price has not recovered significantly, the increase in daily earnings for miners is expected to remain below double digits. It is also important to note that there is more demand for block space, leading to higher transaction fees on the network, further contributing to the daily income of miners.
Featured image from GoBankingRates, chart from TradingView.com
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