Even though bitcoin is up more than 100% year-to-date (YTD), a recent report shows that this has not necessarily translated into gains for the crypto-mining-stocks–bitcoin/” target=”_blank” rel=”nofollow”>network miners. Instead, these miners appear to be experiencing a drop in income even as the bitcoin halving looms.
bitcoin miners' income fell more than 30%
According to a report by BanklessTimes, the income of these miners has decreased by more than 30% in the last six months. Curiously, bitcoin-miners-switch-to-selling-rally-ends-here/” target=”_blank” rel=”nofollow”>these miners had its most profitable month when the price of bitcoin was just rebounding at the beginning of the year. Its revenue soared to $918.8 million in January.
In the months after that, there was a significant decrease in the income obtained. Things started to look up again in October, as that month represented its second-highest monthly earnings of 2023.
They reportedly earned $885 million in that period. However, the downward trend re-emerged in November when these miners They saw a drop in their income once again. The total earned in that month amounted to 615.1 million dollars.
Commenting on this data, BanklessTimes crypto expert Alice Leetham pointed out how this has become a cause for concern. This generated the need to analyze factors that may be contributing to this. bitcoin-price-down-36200/” target=”_blank” rel=”nofollow”>downward trend.
btc market cap currently at $758 billion on the daily chart: TradingView.com
Factors contributing to the trend
The volatile nature of bitcoin prices has been pointed out as the most obvious factor affecting miners' income. The failure of bitcoin to bitcoin-will-hit-100k-bloomberg-says/” target=”_blank” rel=”nofollow”>meet certain price projections has directly impacted the profitability of mining projections.
There is a possibility that certain miners will double down on their operations in the hopes that the crypto token will hit certain milestones, and that has not happened.
bitcoin-mining-difficulty-40000/” target=”_blank” rel=”nofollow”>bitcoin Mining Difficulty Adjustment It is said to be another factor for this downward trend. The difficulty of mining increases as more miners enter the network. This ultimately leads to a decrease in miners' income as more people compete for mine a block. The popularity of bitcoin has not helped in this regard, as the network continues to attract an increasing number of miners.
Meanwhile, there is also the bitcoin Halving event, which will be playing in the minds of these miners. This is when miner rewards are halved. The next one is scheduled for April 2024. With this downward trend and halving on the way, it is not surprising that these miners are looking for bitcoin-miners-on-the-defensive-analyst/#:~:text=Prominent%20Bitcoin%20mining%20operators%20are,proof%2Dof%2Dwork%20era.” target=”_blank” rel=”nofollow”>diversify your operations.
Times without a bankHowever, he believes things could get better again for these miners. They highlighted ongoing advances and growing acceptance of bitcoin as factors that could help “counter these difficulties.”
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