Bitcoin miners need more …



Bitcoin miners need more ...

Bitcoin miners need more time to adjust to the effects of halving

  • The profitability of the mining business deteriorates more and more with the fall of bitcoin.

  • Breaking the support line at $ 9000, bitcoin entered bear territory.

  • Rebalancing the market will take much longer than originally anticipated.

International consortium of news organizations developing transparency standards.

It looks like the block reward cut in the bitcoin blockchain network hit the mining market much harder than previously thought.

Bitcoin miners need more ...

As the price of bitcoin falls below $ 9K, fundamentals in the bitcoin blockchain network are also showing signs of decline..

This time, according to the report of the analytical resource glassnode, the fall in the price of the largest cryptocurrency affected not only traders, but also miners..

Glassnode argues that due to the May halving, it makes no sense to expect a return to the previous values โ€‹โ€‹of mining profitability in the near future, since they will take much longer to adapt to the new economic realities than previously assumed..

Recall that as a result of the past bitcoin halving, cryptocurrency miners now receive not 12.5 BTC per block, but already 6.25 BTC. The suppression of inflation embedded in the source code of the cryptocurrency, which occurs every four years, forces miners to constantly adapt to new conditions.

All in one boat

Bitcoin miners need more ...

According to the published chart, the size of commission costs also began to decline, which may signal that most of the “stuck” transactions in the Bitcoin mempool have finally started to move..

The subsequent decrease in fees over the past 5 days is likely the result of a decrease in difficulty, which eased financial pressure on the rest of the miners..

Along with the slowdown in the self-sufficiency of miners, it seems that the volatility of Bitcoin will also slow down, which could help the cryptocurrency quickly recover to the $ 10,000 mark..

As the cryptocurrency is already trading below the $ 9000 range, glassnode expects further trend regression towards bearish sentiment.

One good turn deserves another

The position of miners in the market was greatly shaken by the situation in Sichuan province, where local authorities banned cryptocurrency mining due to a prolonged drought..

The cumulative confluence of unfavorable circumstances may force the miners to follow exactly the scenario that was announced by the head of the Binance cryptocurrency exchange Changpeng Zhao in early May..

Earlier, he argued that Bitcoin miners may not sell Bitcoin in order to cover losses, but start playing against the market for exhaustion, holding the mined assets as long as possible..

Bitcoin miners need more ...

What do you think? How long will it take for bitcoin miners to return to self-sufficiency? Share your thoughts with us in the comments and join the discussion in our Telegram channel.


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