Bitcoin Miners will be pushed to the point of selling off their BTCs should BTC’s price dip any…

Bitcoin Miners will be pushed to the point of selling off their BTCs should BTC’s price dip any further

Source

Operational cost burden hikes for Bitcoin Miners post Bitcoin halving period

Post halving period, the earnings of BTC miners reduce as their rewards for mining a Bitcoin Block known as Block rewards is reduced by half this time from 6.25 BTC to 3.125 BTC per Block.

So, now generally Bitcoin Miners struggle to stay operational with their earnings from Bitcoin Block rewards much reduced, leaving them with much less earnings to manage their Bitcoin Mining operational expenses.

Ups and downs of BTC price since halving!

Bitcoin prices in the days leading to Bitcoin halving day (April 20) rose from $61,000 to above $65,000 from April 17th to April 20. Bitcoin Miners were making good earnings through BTC fees as well. Post Halving Bitcoin’s price rose up till 22nd April reaching a high of $67,000 and then this price trend reversed, as BTC’s price began to go downwards.

Source

At the time of writing BTC’s price is $58,000.

Puell Multiple indicates that Bitcoin Miners’ earnings have declined

Source

Now, Bitcoin Miners earn much less not only due to reduction of BTC’s Block rewards but also because Bitcoin prices have dipped.

Right now, as we can infer from evaluating the “Puell Multiple”, the value of total Bitcoins issued per day falls down since halving. This metric is derived by dividing the value of total Bitcoins issued daily with the 1 year (365 day average) of the value of total Bitcoins issued daily.

This shows that Bitcoin Miners are earning much less from their Bitcoin Mining Business operations than before.

Bitcoin Mining businesses that can’t manage operational expenses exit…

Right now, the electricity cost to mine one Bitcoin is $77, 400, so definitely with less BTC revenue earnings post halving and subsequent fall in BTC prices, Bitcoin miners would be finding it hard to run their business.

In other words, some Bitcoin Mining businesses are running tight on Margins now, so if BTC prices fall further they may be forced to close business.

This is expected every Bitcoin halving cycle as less competitive Bitcoin Mining businesses who are not able to sustain their operations exit.

Further declines in BTC price may trigger Capitulation brought about by selling activity of Bitcoin Miners

Bitcoin Miners may also be forced to sell their BTCs to meet their expenses to continue operations which could lead to Capitulation with a further fall in BTC’s price due to BTC miners offloading their BTCs.

Right now, Bitcoin Miners are not selling their Bitcoins, possibly hoping the price of BTC would increase, which would provide them with enough earnings to continue managing their Bitcoin Mining operations.

You can read my Articles in these platforms -:

Hive — https://ecency.com/hive-150329/@mintymilecan

Publish0x — https://www.publish0x.com/@greenchic

Bitcoin Miners will be pushed to the point of selling off their BTCs should BTC’s price dip any… was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.