Bitcoin Mining Shows No Signs of Surrendering Despite Declining Revenues!
Bitcoin miners' rewards are usually halved after the Bitcoin halving is completed. The Bitcoin halving was completed last month and their revenue fell to a 14-month low following the halving event. But they show no signs of "capitulation" even as their revenues plummet. As each bitcoin halves the reward to bitcoin miners, they are faced with two options. The options are either to surrender to the rise in the price of Bitcoin to cover their costs or to wait.
After a Bitcoin halving, rewards for Bitcoin miners usually decrease. It is a very challenging time for them. And at this time there are two options for them. 1. Capitulation or 2. Waiting for BTC price to rise. Although one of these alternatives is the surrender of part-time workers is an important issue but at the present time it appears that there is no sign of surrender among Bitcoin miners yet. A metric that gauges the level of selling pressure miners are seeing is this.
While we have seen Bitcoin price rise in recent months, Bitcoin price has been trending downward for quite some time now. Appetite for these new bitcoin-based assets has waned in recent weeks. And this is happening mainly because of the massive drop in prices across the crypto market.
Basically it becomes very important for them to wait for the Bitcoin price to increase when the Bitcoin halving is completed and later when the Bitcoin miners are rewarded. This is because after the bitcoin price is halved during this time miners are briefly relieved as well as their profits are halved which seriously shrinks their income. This is because currently if we look at the market we can understand that the spot BTC price is moving against them. As the price of Bitcoin continues to decline, the miner capitulation risk increases. And as a result, the profits of Bitcoin miners are squeezed as much as they are. And if this downward trend in bitcoin prices continues to stretch into a week-long period, big miners are at risk of giving up a bunch of bitcoins to hedge themselves.
An important point here is that since the completion of the Bitcoin halving, the price of Bitcoin Hash has dropped significantly in line with the expected value of one terahash of hashing power per day and has dropped to an all-time low of $46.55. The hash price is down 74% from its post-halving high As we saw yesterday how the price of Bitcoin fell. Although currently the price of Bitcoin is close to 57 thousand dollars. This price comes largely from Bitcoin's all-time high price that it achieved last March. Not only the price of Bitcoin but also the price of Bitcoin along with all the altcoins have come down at a certain rate. So at this point Bitcoin killers have to choose between two options either capitulation or wait for BTC price to rise.
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Well I figure the miners are waiting for that surge in price in Bitcoin that follows months after the halving, I know for a fact that this will come and surely if I was one of the miners I wouldn't relent either, it's only a matter of time before we are out of this downtrend. Thanks for sharing.
The recent Bitcoin halving has significantly impacted Bitcoin miners, leading to a drastic drop in their rewards. Despite this challenge, miners are not showing signs of capitulation yet. They face the dilemma of waiting for Bitcoin prices to rise or surrendering. However, with the current downward trend in prices, waiting seems to be the preferred option. As Bitcoin prices continue to decline, miners' profits are squeezed, increasing the risk of capitulation. The hash price has also dropped significantly, emphasizing the importance of patience for miners amidst market fluctuations.