- The ship of digital assets’ has been wobbling a lot lately, affecting cryptocurrencies and crypto-related entities.
- Bitcoin miners seem to be stepping back gradually with Bitcoin holdings as the crypto market has slumped significantly.
- Bitcoin (BTC) is exchanging hands at $20,105 and is down by approximately 4% in the last twenty-four hours.
The recent downtrends in the crypto industry had a lot of impacts on not only crypto assets but also the crypto-related entities, for instance, the cryptocurrency miners. The market performance has been significantly low lately, which has prompted even the prominent HODLers to start selling.
A new report by Reuters highlights that Bitcoin miners are getting rid of their Bitcoin holdings in the last two months as the crypto space has slumped majorly and the value of crowned crypto-asset declines.
According to Arcane Research, the digital asset analysis firm, an uncommon trend last month, the Bitcoin miners sold more BTC compared to the amount they generated through mining.
In May, the miners sold off just 20% of the Bitcoin that they managed to mine, and the remaining rewards were held with anticipation of higher profits at the end as Bitcoin (BTC)’s value soared.
But things seem to go topsy turvy as crypto has slumped in the recent few months, which has prompted some Bitcoin miners to sell off their holdings if they want to continue their mining business.
Over the years, as Bitcoin’s value continued to grow, Bitcoin mining became quite profitable, but that is not the case now. Mining itself has become tougher with time as it requires high-powered computer processing power, and the process has become more complex with time and will continue to do so in the future.
More machine power was needed following cryptocurrencies reaching their All-Time Highs last year to continue earning Bitcoin. Then there are also concerns regarding high energy consumption, government regulations, BItcoin halving, etc.
Although the Bitcoin and other altcoins mining wouldn’t be a business that would end, as the digital assets continue to grow by leaps and bounds in popularity and adoption, but the competition would obviously be higher than it was ever before.
It would be really interesting to see how the miners would stay profitable given the issues and complexities and what turn the market would take in the future.
At the time of writing, Bitcoin (BTC) is exchanging hands at $20,105 with a market cap of $383,606,022,393 and is down by approximately 4% in the last twenty-four hours.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
