Bitcoin
Bitcoin miners affected as network difficulty reaches…
Bitcoin miners ride a rollercoaster of challenges. Surging outflow and declining revenue add to their woes amidst a bearish trend and rising network difficulty.
- Bitcoin miner outflow recently hit a 2-year high.
- BTC miner revenue declined as price attempted to bounce back.
Bitcoin’s [BTC] price has rebounded lately, yet miners might have missed the boat. Recent data indicated that there has been a surge in Bitcoin (BTC) outflow from miners over the past few days. Could this be attributed to dropping fees and network difficulty?
Read Bitcoin [BTC] Price Prediction 2023-24
Increase in Bitcoin outflow from miners
Glassnode revealed an interesting development concerning Bitcoin miners’ outflow. On 19 June, the chart recorded a notable spike in the seven-day moving average, reaching approximately 2.188.
This surge represented the highest movement observed in the past two years, with a similar peak occurring in April 2022 at 2.185.
Another metric, the mean miner outflow on CryptoQuant, also demonstrated an upward trend of late. At press time, the miner outflow surpassed 19, indicating a significant level of Bitcoin outflow.
These findings suggested a growing inclination among miners to transfer their Bitcoins to exchanges.
Source: CryptoQuant
BTC mining difficulty and hashrate
Examining the network difficulty chart on Blockchain.com revealed a consistent upward trend in the king coin’s difficulty level since the beginning of the year. In January, the network difficulty stood at approximately 34 trillion, but it had surpassed 53.2 trillion at press time.
Source: Blockchain.com
Furthermore, there had been an increase in the total hashrate, which stood at nearly 340 million at the time of writing. This metric suggested that miners faced higher costs in mining BTC, but it raised the question of whether their revenue reflected the same trend.
Bitcoin miner revenue on a downtrend
Analyzing the Bitcoin miner revenue metric on Glassnode revealed a notable decrease in revenue in recent times. From 14 June, miner revenue experienced a decline of nearly 2%. At press time, miner revenue stood at 3.13%.
Source: Glassnode
Given this significant drop in revenue combined with the upward trends in hashrate and difficulty, it is likely that miners are selling their Bitcoin holdings to sustain profitability.
However, if there is a substantial increase in the price of BTC, it could potentially halt this sell-off as the revenue from mining becomes more valuable.
How much are 1,10,100 BTCs worth today?
Examining the timeframe chart of Bitcoin revealed that it concluded the weekend with a slight loss. As of this writing, it was experiencing a modest profit of less than 1%, with a trading price of approximately $26,520.
Despite the recent upward movement in price, BTC remained entrenched in a bearish trend.
