Crisis averted? BTC miners make 50 percent more sales

Bitcoin miners can breathe again. The July 2024 Bitcoin price recovery has reduced selling pressure. This writes CryptoQuant in a report. In early July, Bitcoin fell to about $53,000, causing financial problems for many smaller miners in particular. Drop in income and falling hashrate: it was the beginning of a small crisis.

This crisis was also caused by halving. This involves halving the rewards for miners every four years. The halving took place on April 19, 2024. One of the many consequences was that miners had to sell more of their Bitcoin to cover ongoing costs.

According to CryptoQuant, mainly smaller miners had to sell, while larger companies could still expand their stocks. The situation has now improved somewhat.

Bitcoin's exchange rate has fluctuated between $65,000 and $70,000 over the past seven days. Daily earnings of miners are currently around $32 million. At the beginning of the month, it was $22 million, a low point for the year. The hashrate, Bitcoin's global computing power, reached a record high last Monday, July 29, 2024, according to Blockworks.

However, CryptoQuant's report warns, "The profitability of the miners is too dependent on the Bitcoin price."