The analytics company Alphractal has published a report assessing the current situation in the Bitcoin mining industry. Data indicates that many miners prefer not to sell their Bitcoin reserves, even amidst low profitability.
Decline in Miner Revenues
Reports indicate that total transaction fees on the Bitcoin network have fallen to their lowest levels since 2012. This is attributed to extremely low on-chain activity, which negatively affects miner revenues.
Hash Rate Fluctuations
The Bitcoin network is experiencing the highest hash rate fluctuations in its history. This is believed to be due to major mining operations shutting down, resulting from falling revenues and decreased network demand.
Market Prospects
Despite the difficult mining conditions, the fact that miners have not yet sold their reserves is considered a positive sign. Alphractal notes that in past cycles, miners typically sold during periods of rising prices. However, both price and network activity are currently at low levels, suggesting the market may be in a period of 'adjustment' rather than 'capitulation.'
The state of the Bitcoin mining industry remains challenging, with low profitability and hash rate fluctuations. At the same time, miners’ resilience in maintaining reserves may indicate their confidence in future market changes.
