As the crypto-winter severely affected the price of all cryptocurrencies, the mining industry also suffered a great loss. Bitcoin miners struggled to generate a profit over the last few months thanks to the same. In fact, soaring electricity prices across the globe were also to blame for this situation.
However, the latest dataset from Glassnode seems to have reduced the stress level of miners compared to the past few months.
What’s going on?
While Ethereum miners are in a tough spot due to ETH’s shift from PoW to a PoS consensus mechanism in September, good news came in for Bitcoin miners. After hitting a low in June 2022, the king of cryptos has been steadily rising since. In fact, BTC climbed to as high as $24,000 on the charts. Bitcoin’s price appreciation played a key role in reducing the stress on miners as their profitability somewhat increased.
Miners’ stress reached a 2022 peak during the crash in June. As BTC saw some inclination, it picked up some southward momentum, gradually welcoming better days for miners in the process. The same is in line with “a significant reduction in miner distribution to exchanges in recent weeks”.
Moreover, Bitcoin’s mining difficulty has been on the decline since reaching its all-time high in May. This is also a good sign for miners as they would require less computational power to mine blocks. However, after a 3-month downtrend, a slight increment in difficulty did happen earlier this month.
Apart from these, another notable development is that the total revenue of the miners has also increased as compared to June, when it reached its lowest level this year. A drop in stress levels, coupled with an increase in miner revenue, could be a sign of better days for bitcoin’s mining community.
Investors’ interest
Though this new development is primarily focused on miners, investors can also use this opportunity to make better investment decisions. As suggested by Glassnode’s graph, the 30-day MA, after being below the 60-day MA for a long time, showed some degree of trend reversal as it slowly approached the red line.
When the 30-day MA crosses the 60-day MA, it is a positive market indicator, encouraging investors to buy more. Therefore, as the green line continues to approach the blue line, an opportunity for investors to accumulate more bitcoin may soon come.
