Bitcoin Miners Persist Despite Earnings Hitting 14-Month Low After Halving
Summary:
Bitcoin miners' earnings fall to a 14-month low after the halving event in April, but they show no signs yet of surrendering. CryptoQuant CEO Ki Young Ju suggests they are awaiting a price rise to offset costs. A decline in interest in Bitcoin-based assets combined with falling crypto market prices have put financial pressure on miners, raising the possibility of surrender. Bitcoin's hash price has also dropped to a record low. Despite decline from their peaks, Bitcoin and Ether still have substantial market prices.
Despite Bitcoin (BTC) miners witnessing their income sink to a record 14-month low following the halving event in April, there is no evidence of them surrendering just yet, according to Ki Young Ju, CEO of CryptoQuant. In his post on April 30, Ju explains that miners now find themselves at a crossroads where they must either surrender or hold fast, hoping for a surge in Bitcoin's value to offset their expenses. He reiterates this using the 365-day Puell Multiple chart, a tool used to calculate potential sell pressure from miners, which corroborates that miners aren't succumbing quite yet.
Bitcoin miner earnings have plummeted to their lowest since February 25, 2023, as per CryptoQuant's data. This revelation is all the more pertinent given the recent fall in cryptocurrency prices, leading to apprehension about miner surrender.
Following the halving on April 20, Bitcoin miner revenue swiftly escalated, largely attributed to the keenness of rare satoshi seekers and Runes Protocol adventurers who paid heavily for slots on the initial blocks mined. However, the recent weeks have seen a reduction in the demand for these unique Bitcoin-based assets, reflecting the general slump across the cryptocurrency market.
According to an April 30 post by market research firm, The Bitcoin Layer, the faltering Bitcoin prices are intensifying financial strain on miners, raising the risk of surrender. Should the decreasing trend persist and extend for several weeks, major miners may be compelled to discard substantial amounts of Bitcoin as a defensive strategy.
Interestingly, Bitcoin's hash price, which indicates the expected worth of 1 Terahashes of hashing power per day, has dipped to a record low of $46.55, marking a sharp 74% drop from its post-halving peak, as per Hasrate index figures.
Currently, Bitcoin's price stands at $60,400, having declined by 18% from its all-time peak of $73,700 on March 14, as per TradingView data. Ether (ETH), the second dominant cryptocurrency, has also dropped 26% from its annual high of $4,070 on March 12.
Published At
5/1/2024 4:59:38 AM
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