- Bitcoin mining companies continue to innovate despite market volatility. Fees generated per transaction decline.
- Holders don’t see any selling pressure. MVRV ratio begins to decline.
Even though Bitcoin prices have been steadily growing in the last few months, the state of miners has been relatively volatile. With growing costs and a decline in miner revenues, the future of miners has been looking uncertain for quite some time.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Don’t mine me
That hasn’t stopped mining companies from launching new products to better service miners’ needs. Whatsminer, a leafing provider for mining hardware, recently introduced three new Bitcoin mining machines.
The M53S++ offers a high hashrate of 320 TH/s and an energy efficiency of 22J/T, claiming to be the top-performing mining machine currently available. The other two models, M50S++ and M56S++, provide hash rates of 150 TH/s and 230 TH/s, respectively, with different cooling methods (air cooling and immersion cooling).
The increasing efficiency of mining rigs and the continued interest shown by companies to make new developments in this sector indicated that a majority of the crypto space believes in the long-term prospects of Bitcoin mining.
However, miners need to be on the receiving end of developments being made on the protocol. Michael Saylor, the founder of MicroStrategy, stated that long-term success for Bitcoin miners is pivotal for the network.
As new technologies such as Ordinals are developed on the protocol, the activity on the network increases. This allows Bitcoin miners to generate fees on these transactions. Although there has been high activity on the Bitcoin network, fees collected by miners per transaction declined according to Blockchain.com’s data.
This decline in fees collected has partly been caused by the price correction that BTC has faced in the last few weeks.
If the fees collected per transaction by miners continue to decline, the overall selling pressure on Bitcoin miners may rise. This could impact the price of BTC in a negative way.
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Holders see no pressure
However, BTC holders didn’t face the same amount of selling pressure as the miners. As per Santiment’s data, the MVRV ratio for holders decreased significantly. This indicated that BTC had moved out of the overbought space. It also showcased that many holders wouldn’t be profitable if they decide to sell at press time.