Bitcoin Miner Revenue In August Tanks 57% from 2024 Peak, Another Sell-off Coming?
During the last month of August, the Bitcoin miners recorded the lowest monthly revenue in a year’s time, dropping by a massive 57% from the peak of 2024. This raises the question of whether the BTC miner capitulation is really behind us or if the market is preparing for another major sell-off ahead.
Bitcoin Miner Revenue Drop Is A Matter of Concern
During the last month of August, BTC miners recorded a revenue of $827.56 million, dropping by 10.5% from July’s revenue of $927.35 million. However, the Bitbo data shows that the miner revenue was up 5% from August 2023.
By the August closing the Bitcoin mining revenue was down by a staggering 57% from the 2024 peak of $1.93 billion in March, just ahead of the Bitcoin halving event. Besides, it was also the same month when the Bitcoin price touched an all-time high of $73,500.
The last time, the BTC mining revenue dropped this low was in September 2023, when they earned $727.79 million. During the month of August, the total number of Bitcoins mined also dropped to 13,843 BTC, down from 14,725 BTC mined in July.
The Bitcoin halving event has shot up the mining difficulty significantly cutting down the miner rewards by 50% to 3.125 BTC. This coupled with the drop in the BTC transaction volumes has made things worse for miners.
On the other hand, the level of mining difficulty has also continued to climb further hitting an all-time high of of 89.47 trillion in August. This led to a strong profitability drop for the miners. Just over the last weekend, Bitcoin miners sold a total of 2,655 BTC worth a staggering $154 million.
#Bitcoin miners sold 2,655 $BTC over the weekend, worth around $154 million! pic.twitter.com/8VXDETcDdf
— Ali (@ali_charts) September 2, 2024
As a result of these developments, Bitcoin miners are exploring other revenue options such as giving computational power to the artificial intelligence (AI) industry.
Top mining firms like Marathon Digital are adopting the MicroStrategy playbook that involves $250 million in convertible note offering to buy BTC from the open market. On the other hand, players like Vortex Brands are directly buying MicroStrategy shares as a proxy bet on BTC.
BTC Miner Sell-off Ahead?
During the second quarter following the halving event, Bitcoin miners were net sellers in order to cover the operational costs. Now, as they continue to face heat with dropping revenue, the BTC miner selling spree could kickstart once again to generate more cash.
Also, September has been historically bearish for Bitcoin which can trigger another BTC price drop coupled with the miner sell-off. The BTC price continues to face selling pressure and is trading down from its key support levels of $58,450. This opens the gates for a further price crash to $50,000 levels.
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