Monday, February 6, 2023
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Bitcoin Miners Revenue Margins Shrink Fast As BTC Struggles

by Bhushan Akolkar
October 25, 2022
in Cryptocurrency
Reading Time: 3 mins read
A A
0
Home Cryptocurrency
Share on FacebookShare on Twitter


The world’s largest cryptocurrency Bitcoin (BTC) has been trading in a pretty tight range recently close to $19,200 level. On one hand, the Bitcoin hashrate continues to grow fast, which means that Bitcoin miners have to put more computational power to add new blocks to the Bitcoin blockchain.

As energy costs rise at the same speed, Bitcoin miners have been getting paper-thin margins on their mining revenue. This could probably lead to another major sell-off by Bitcoin miners as we saw earlier this year. As on-chain data provider Glassnode explains:

The #Bitcoin Hash Price has reached an all-time-low of $66,500 per Exahash. This means that $BTC miners are earning the smallest reward relative to hashpower applied in history, and likely puts the industry under extreme income stress.

Earlier this month, Arcane Research published a report stating that the miner revenues have dropped by 81% from their peak in October 2021. Also, a large majority of miners saw their gross margins drop to 30%-40% from 80%-90% area. The Arcane Research report notes:

“Unfortunately, most miners today are, to a varying degree, exposed to rising power prices. The mining industry has already become almost eradicated in Europe due to the energy crisis, but American miners also feel the heat.

Power prices in the US, where a significant portion of the industrial-scale miners are located, have increased considerably and will likely keep rising as natural gas prices go up.”

Bitcoin Miners vs Long Term Holders

While the Bitcoin hash price is making new lows, Bitcoin long-term holders on the other hand have been showing great conviction. Citing data from Glassnode, crypto analyst Will Clemente explains:

“A new all-time high 78% of Bitcoin supply has not moved in at least 6 months. Pretty remarkable in the face of the worst macroeconomic backdrop in recent history, geopolitical uncertainty, and WW3 fears. There is a group of seriously convicted HODLers out there”.

Courtesy: Glassnode

Bloomberg analyst Mike McGlone recently said that Bitcoin is entering an “unstoppable maturation stage“. He believes that the BTC price will continue to rise despite the Fed rate hikes ahead this year.

It will be interesting to see that if the Bitcoin miners trigger a selling going ahead, will the long-term holders continue to show the same level of conviction? As of press time, Bitcoin (BTC) is trading at $19,340 with a market cap of $372 billion.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Tags: BitcoinBTCFastmarginsminersrevenueShrinkStruggles
Previous Post

What Are Sin Stocks? (And Should You Ever Invest in Them?)

Next Post

Medtronic: 45 Years Of Dividend Increases, All-Time High Yield

Related Posts

LPT/USD is Surging as the Gates to $10 Are Now Open

by Azeez Mustapha
February 6, 2023
0

Join Our Telegram channel to stay up to date on breaking news coverage The Livepeer price prediction reveals that LPT...

Jump and a16z Fight for Uniswap Bridge Privileges

by Tom Carreras
February 6, 2023
0

Key Takeaways Uniswap wants to deploy on BNB Chain. However, two crypto firms are disagreeing on which cross-chain bridge the...

AI Tokens Lead Crypto Market Gains As Institutional Investors Bet Big On The Technology

by Best Owie
February 6, 2023
0

Ever since the launch and popularity of Open AI’s ChatGPT, AI tokens have been doing incredibly well in the market....

On Chain Data Shows Buy Chance?

by Anvesh Reddy
February 6, 2023
0

Aptos (APT) News: Amid price correction phase in the crypto market, Aptos, the layer 1 blockchain protocol, stands as the...

Technical Pricing: 200WMA vs 200DMA approaching key resistance, support levels

by James Van Straten
February 6, 2023
0

Definition The Mayer Multiple (200D-SMA)  The 200-Day Simple Moving Average is a common technical indicator in Technical Analysis, commonly associated...

FCA Asks Crypto Firms to Prepare for New Promotion Rule

by Arnab Shome
February 6, 2023
0

The UK's financial market supervisor, the Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is...

Next Post

Medtronic: 45 Years Of Dividend Increases, All-Time High Yield

nmdc demerger: NMDC to separately list steel biz; last day to buy stock to qualify for demerged shares

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

LPT/USD is Surging as the Gates to $10 Are Now Open

February 6, 2023

LIC Housing Finance Q3 net profit drops 37% to Rs 480 crore, home loan portfolio up by 13%

February 6, 2023

UK military running out of money and ammo – media — RT World News

February 6, 2023

Ritchie Bros. Auctioneers: Coming Out Of The Auction (NYSE:RBA)

February 6, 2023

Dividend Aristocrats In Focus: Walmart Inc.

February 6, 2023

$RIVN Electric truck maker Rivian is reportedly developing an e-bike

February 6, 2023
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

LPT/USD is Surging as the Gates to $10 Are Now Open

LIC Housing Finance Q3 net profit drops 37% to Rs 480 crore, home loan portfolio up by 13%

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In