Bitcoin [BTC]: These factors might initiate a reverse exodus for struggling miners

BTC

The mining industry of bitcoin has suffered a serious setback in 2022. Considering factors such as massive price correction, inflation, etc., many miners have also exited the bitcoin network. Why? Well, mainly to make ends meet.

Now, many have raised concerning questions about the profitability of this industry. But, where’s the answer?

wish some relief

According to The Blox Research, bitcoin miners generated more than $15 billion in revenue during 2021. This highlighted a year-over-year increase of 206%, a staggering number to say the least. However, 2022 has not been kind. That being said, struggling miners may have something to look forward to in a (slow) market correction.

Bitcoin mining difficulty has been adjusting for a while now. With the hashrate falling as more miners go offline due to declining profitability, mining difficulty has been following pretty much the same trend.

The falling difficulty level (27.69 t at press time) can be seen in the graph below.

But, is there anything different this time? Well, for starters, the said decline coincided with some recovery across the market. At the time of writing, Bitcoin’s price remained above the $23.7k-mark.  I.e. More cash flow on each Bitcoin mined for respective BTC miners. Indeed, a sign of some relief.

Following the same, an increase in the BTC balance of miners may portend a promising scenario. Here it is exactly the same. Despite the current crypto-chaos, the balance of BTC miners hit a 4-year high.

Glassnode’s graph attached herein seemed to support the statement too.

Overall, the companies that mined the first cryptocurrency held 1,845,303 BTC, which is ~9.6% of the current supply of BTC.

Sunshine + rain

While these developments project a steady uplift, miners are not completely out of the woods yet. In fact, at the time of writing, the total miner revenue continued to trade downhill.

Nevertheless, if bitcoin continues to recover and the difficulty subsides, miners can continue their operations until the next bull run appears. Until then, BTC holders need to show their support despite everything, as it still is.

Here, it’s worth pointing out that the number of wallets with a balance of 10,000+ BTC has increased significantly since the beginning of the month.

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