Higher operating costs and lower rewards affect Bitcoin (BTC) miners,

Rising operating costs and falling rewards are taking a toll on Bitcoin (BTC) miners, but they are by no means at catastrophic levels, according to a cryptocurrency analyst.

“We are in a period of hash bar reversal, and blocks are coming in about 14 seconds slower than they should, which tells you that there is less hash rate online and blocks are found a little more slowly,” James Check, principal analyst at Glassnode. aka Checkmatey said: “In a video dated June 21.

“About 5% of the mining hash rate is suffering right now,” Czech explained, referring to the amount of processing and computing power provided to the network through mining.

James Cheek talks about the Bitcoin mining hash rate. Source: Chikunchin/YouTube

Check says “5% isn’t huge” and that Bitcoin miners will “probably” distribute some of their holdings, but it doesn’t appear to be a “complete sell-off.”

A hash bar reversal occurs when the 30-day moving average of the hash rate crosses below the 60-day moving average, indicating a period of mining difficulty. This could be due to several reasons, including increased operating costs, a drop in the price of Bitcoin, or equipment issues among miners.

After the Bitcoin halving on April 20, the Bitcoin hash rate began to decline as Bitcoin mining companies began shutting down unprofitable mining rigs. Every four years, a halving event takes place, cutting miner rewards in half.

The April 20 halving reduced mining rewards to 3.125 BTC from 6.25 BTC.

Bitcoin total hash rate graph (TH/s). Source:

At press time, the Bitcoin network’s hash rate was 586 exahashes per second (EH/s), down 2% over the past 30 days, according to data from

Cheek suggested that while miners are doing the hard work at the moment, at worst they could break even by mining new bitcoins, to cover operating costs.

Bitcoin miners could be in a period of equilibrium

“Miners may be treading water here,” Chi said, following other analysts’ recent comments on Bitcoin’s lack of strength: “Miners may be treading water here, they may not be capitulating widely to the level of the bear market, and they may just be treading water, they mine ten bitcoins, they sell ten Bitcoin miner profitability.

“Bitcoin miners are selling most of their coins to pay their bills,” Panos wrote in a June 18 post.

In a separate article on

about: Bitcoin Falls Below Its Short-Term Holder Realized Price, Raising Concerns of $60,000

“Miners must adapt and adapt to fees becoming their primary source of revenue, forcing the industry to innovate more and implement efficient capital management,” he wrote in X .

“Nearly all Bitcoin miners are selling 100% of their coins, while CLSK has been able to store their bitcoins and use its relatively USD-denominated balance sheet to acquire new capacity,” wrote Matthew Siegel, head of digital asset research at VanEck.

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