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- As BTC\u2019s price crashed, it caused a big dent in miners\u2019 total earnings.<\/em><\/li>\n
- Miner reserve increased substantially indicating a hoarding mentality.<\/em><\/li>\n<\/ul>\n
Bitcoin [BTC]<\/a> miners\u2019 predicament was set to continue as revenue earned through creating new blocks on the chain sank to new depths.<\/p>\n
\nRead\u00a0Bitcoin\u2019s [BTC] Price Prediction<\/a>\u00a02023-24<\/p>\n
\nAs per an update shared by on-chain analytics firm Glassnode dated 19 August, the total transaction fees paid to miners fell to a new 5-month low of $21,256. This drop was worse than the previous 5-month low, recorded more than a month ago.<\/p>\n
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\ud83d\udcc9 #Bitcoin<\/a> $BTC<\/a> Total Fees Paid (7d MA) just reached a 5-month low of $21,256.10<\/p>\n
Previous 5-month low of $21,272.32 was observed on 13 July 2023<\/p>\n
View metric:https:\/\/t.co\/651pr49pgN<\/a> pic.twitter.com\/epdqmcV3Xv<\/a><\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 19, 2023<\/a><\/p>\n<\/blockquote>\n
Miners\u2019 woes continue<\/strong><\/p>\n
The fall in fee revenue came even as Bitcoin recorded its steepest drop of 2023 over the last week. After wiggling in a tight trading range for more than a month. the king coin broke steeply to the downside with weekly losses of 11% at press time, data from CoinMarketCap<\/a> revealed.<\/p>\n
It is a known fact that miners rely on fiat currency to finance their ever-increasing hardware and other infrastructure costs. Hence, they convert their BTC holdings into cash frequently.<\/p>\n
However, as prices crashed, it caused a big dent in miners\u2019 total earnings, as reflected in the graph below.<\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/glassnode-studio_bitcoin-total-miner-revenue-btc-all-miners-7d-moving-average-1.png\")
<\/a><\/p>\nSource: Glassnode<\/p>\n<\/div>\n
Notice how the drop in revenue came abruptly following a sustained period of increase. This possibly threw their liquidation plans into disarray.<\/p>\n
As per CryptoQuant, the amount of BTC held by miners increased substantially over the past week, forming a negative correlation with the price. As a result, miners developed a hoarding mindset and waited for prices to rebound slightly before dumping their stashes.<\/p>\n
![\"\"](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/Bitcoin-Miner-Reserve-All-Miners-1.png\")
<\/a><\/p>\nSource: CryptoQuant<\/p>\n<\/div>\n
Hash rate continues to rise in the long-term<\/h4>\n
Despite the ebbs and flows of the mining sector, it was pertinent to note that the overall hash rate for Bitcoin has only trended upwards over the years. A higher hash rate is imperative for the overall security and decentralization of the blockchain. It helps in preventing malicious players from launching assaults like the 51% attack.<\/p>\n
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The hashrate doesn’t care about the prices of last year, month or day. It’s just going up, up, up \u26cfhttps:\/\/t.co\/ptrEnBSiP7<\/a> pic.twitter.com\/LcV6UufeuX<\/a><\/p>\n
\u2014 Maartunn (@JA_Maartun) August 19, 2023<\/a><\/p>\n<\/blockquote>\n
\n - Miner reserve increased substantially indicating a hoarding mentality.<\/em><\/li>\n<\/ul>\n