Bitcoin miners in trouble as in December 2022

Since the fourth Bitcoin hit in April, many mining companies have been under great financial pressure. According to data from blockchain.com, mining revenues have dropped significantly. Whereas at their peak they were close to $100 million, last Sunday only $24 million was earned from blockrewards. This makes the tough competition even worse.

In a post on X, Julio Moreno, head of research at the on-chain service CryptoQuant, points out how serious the situation is. He explains that there has been a 7.6 percent drop in True Hashrate. The last time there was such a steep drop was in December 2022 during the FTX crisis.

"True Hashrate Drawdown" refers to the reduction in computing power used for Bitcoin mining. This reflects the miners' difficulties in keeping their business running in a strained financial situation.

Bitcoin miners need to sell their BTC to cover their running costs. This selling pressure was evident in June, when miners sold more than 30,000 Bitcoin within a few weeks.

For BTC investors, however, the current situation can also be a positive sign. After all, December 2022 marked the Bitcoin bear market's all-time low. Currently, the Bitcoin price stands at $62,661. In the past 24 hours, the Bitcoin price has risen 1.93 percent.