- Bitcoin is maintaining its position above the $60,000 mark, but recent miner actions could potentially disrupt this stability. The recent halving has reduced the block reward from 6.25 BTC to 3.125 BTC, causing a significant drop in miner revenues.
- Bitcoin miners are feeling the pressure as they now receive half as much for verifying transactions and mining new blocks. This has led to an increase in selling pressure from the miners.
- Two of the biggest Bitcoin miners, Marathon Digital and Riot Platforms, currently hold BTC worth over $1.6 billion between them. However, the recent decline in trading activity and volume means revenue from network fees is dropping, increasing the likelihood of miners selling their holdings.
Bitcoin miners are facing increased pressure due to the recent halving, which has led to a significant drop in their revenues. This could potentially disrupt Bitcoin’s stability above the $60,000 mark.
Bitcoin Under Increased Pressure
Bitcoin miners largely rely on two revenue streams to keep operating: the mining reward and transaction fees. The Bitcoin market is cyclical and each halving has historically led to an increase in selling pressure from the miners. Data shows that the recent April halving has led to a fall in the Bitcoin hash rate with mining profitability now at its lowest point in three years. For miners with high operating costs, this drastic mining pay cut means they have to find other ways to generate income and fund their business. For many, the only option is to sell some of the BTC they hold.
Impact on Major Bitcoin Miners
Marathon Digital and Riot Platforms, two of the biggest Bitcoin miners, currently hold BTC worth over $1.6 billion between them. Interestingly, the spike in Bitcoin network fees before and after the halving has mostly offset operational costs and compelled the need to sell. However, the recent trading activity and volume decline in the past few days means revenue from the network fees is dropping and the likelihood of miners selling their holdings is increasing.
What’s Next For BTC?
At the time of writing, Bitcoin is trading at $61,888 and is on a 1.20% decrease in the past 24 hours. The next three to six months will be crucial in determining how much the halving and miner selling impacts the Bitcoin price. If demand remains strong and most large miners can weather the revenue drop without selling too many of their holdings, the price could hold steady and even start to climb. Fortunately, there are still a lot of catalysts for price surges that could offset the looming selloff from miners. Hence, Bitcoin has a good chance of defending the $60,000 price level.
Conclusion
Bitcoin’s stability above the $60,000 mark could be disrupted due to the recent halving and the subsequent drop in miner revenues. However, if demand remains strong and miners can weather the revenue drop without selling too many of their holdings, the price could hold steady and even start to climb. The next few months will be crucial in determining the impact of these factors on Bitcoin’s price.
