Bitcoin Miner Revenues Continue To Grow, Will This Put A Stop To The Sell-Offs?
Bitcoin miner revenues have been a hot topic of discussion in the last three months. It mainly follows the decline in cash flow of mining machines due to the drop in the price of BTC, and that has adversely affected the revenues of bitcoin miners, seeing them drop to yearly lows. However, as the market has recovered some of its lost value, bitcoin miners are starting to fare better in terms of revenues, which could be the plug to the recent sell-offs.
Miner Revenues Grow
Bitcoin daily miner revenues had dropped to the $17 million level during the lowest point. At this time, bitcoin miner revenues were dropping in double-digit percentages following the plunge in BTC’s price. It would, in turn, trigger massive sell-offs from miners as they scrambled to keep their operations going.
The miner revenues are now rebounding following the price increase. Last week, the price of BTC had grown to more than $24,000, and this increase is being reflected in miner revenues. According to data from Arcane Research, daily miner revenues had jumped 5.32% from the previous week’s $20.4 million to last week’s $21.55 million. This reversal in the declining trend has once more helped miners to become more gas flow positive, albeit by a small margin.
However, the daily miner revenue would be one of the only few bitcoin metrics to be green for last week. The percentage of miner revenues made up by fees declined significantly, falling 0.68%, as fees per day declined 28.12% to $317,246 from the prior week’s $441,342.
BTC retakes $23,000 | Source: BTCUSD on TradingView.com
The daily transaction volumes were also down, which explains the drop in fees realized per day. Transaction volume was down 14.38% for the week, while average transaction value was down 15.66% to come out at $254,429.
Will Bitcoin Miners Stop Selling?
Bitcoin miners have had to offload thousands of their mined BTC to fund their operations. The months of April and June had seen bitcoin miners selling off more BTC than they had produced for the month for the first time ever. It marked the beginning of the sell-off trend for these bitcoin miners.
By now, bitcoin miners have sold more than 4,000 BTC due to declining profitability. However, with the rebound in miner revenue, it is possible that there may be a slowdown in the sell-offs, particularly for public miners.
One of the reasons that could put a stop to it is the increase in the value of mining stocks as BTC grows. An example is the Marathon Digital stock which is up more than 28% from its last week’s low. MARA is currently trading at $12.96 after hitting a low of $10.08 last week.
Featured image from Bitcoinist, chart from TradingView.com
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