After Bitcoin’s halving, miners have to adapt to new market conditions to continue operating: hashrate down 7.6%.
After Bitcoin’s halving, miners are facing various economic challenges to remain in the market. Recent data shows a decrease of 7.6% in hashrate, which has reached levels similar to the period following the collapse of the FTX exchange.
The decline in miner profitability is intensified by a reduction in on-chain transactions. Immediately after the halving, miners earned high transaction fees following the peak activity of the Runes protocol. However, with the decrease in on-chain activity, earnings rapidly declined. Daily Rune transactions dropped from over 753,000 to 21,861, causing miners’ total earnings from Rune transactions to fall below 2 BTC per week, a sharp decline from over 1000 BTC in April.
To sustain their operations, various mining companies are shutting down their machines and liquidating mined bitcoins.
Reduction in selling pressure
In the months following the halving, miners have been the main actors causing the decline in Bitcoin’s price. However, recent data suggest that the selling pressure from miners is decreasing.
According to analyses by CryptoQuant, the market is absorbing the latest sales from miners. The reduction in miners’ selling pressure could create conditions for a new Bitcoin price rally in the third quarter of 2024.
