The Halving and Its Consequences for Bitcoin Miners

The recent halving of mining rewards, known as the halving, has plunged bitcoin miners into a financial abyss. Miners’ revenues have decreased by 63% since this event, dropping from $79 million per day to only $29 million.

Bitcoin miners are facing increasing financial difficulties following the halving of mining rewards, which has led to a 63% decrease in their daily revenues, according to data from a blockchain analytics platform.

This drop in revenues, coupled with Bitcoin's recent surge to $57,800, is putting many miners in a precarious position, potentially triggering a massive capitulation.

The halving, which reduces the mining reward from 6.25 BTC to 3.125 BTC per block, has significantly impacted miners' finances.

Moreover, the fact that BTC flirted with $57,800 this morning will not help these actors, to say the least.

According to the platform's analysis, several indicators point to bitcoin miner capitulation, including a 7.7% decrease in the hash rate.

This drop, which began following the halving, highlights the increasing difficulty for miners to maintain their activity.

Historically, decreases in the hash rate have been linked to bearish market conditions, indicating even tougher times ahead for miners.

However, this could also present potential opportunities for investors seeking optimal entry points.

Bitcoin miner capitulation has often been used by experienced investors as a contrarian buy signal.

When miners are forced to sell their BTC to cover their costs, it creates downward pressure on the price of Bitcoin.

However, this movement can also indicate that the market is nearing its bottom, setting the stage for a potential recovery.

Data from the platform shows that miners are rapidly selling their Bitcoin reserves, with daily BTC outflows from miners' wallets reaching their highest levels since May.

This massive sell-off by miners is a clear indication of their desperation amid the declining revenues.

The “hash price,” which measures miners' profitability per unit of computing power, has also hit historic lows.

Currently, the average revenue per hash is $0.049 per EH/s, barely above its all-time low of $0.045.

This declining profitability further worsens the miners' plight, compelling them to shut down their operations and sell their Bitcoins, contributing to the downward spiral.

As Bitcoin miners capitulate, the flagship cryptocurrency may find a new bottom before bouncing back.

Patience and astute analysis will be crucial in navigating this turbulent period.

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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

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