Bitcoin Mining Capital ‘No Signs’ Despite Declining Revenues
Bitcoin (BTC) miners are showing no sign of a “capital” despite earnings falling to a 14-month low following April's halving event.
In an April 30 post for X, CryptoQuant CEO Ki Yang Ju said that following the decline in revenue, Bitcoin miners now face two options, capitulation or wait for Bitcoin's price to rise to cover their costs.
“Now they have two options: 1. capitalize or 2. wait for the BTC price to rise.”
Referring to the 365-day pull multiple chart – a gauge of the magnitude of selling pressure by miners – Ju said miners are not showing any signs of capital “for now”.
Ju's analysis comes as a recent dip in crypto prices has raised concerns about mining.
After the April 20 halving of the first blocks mined, Bitcoin mining revenue increased due to the unusual satoshi hunters and runes protocol diggers.
However, appetite for these novel bitcoin-based assets has waned in recent weeks – weighed down by the broader price action in the crypto market.
“Miners had a brief reprieve from the halving of Bitcoin, but their profits are now being squeezed sharply as the price of BTC continues to bear down on them,” market research provider The Bitcoin Layer said in an April 30 post by X.
“Mining capacity risks are increasing, as profits are squeezed. If the price of bitcoin continues to adjust downwards in the next few days and last for weeks, big miners are at risk of losing more bitcoins to protect themselves, the firm added.
Related: Bitcoin's ‘euphoria phase' cools, but BTC bottom may be near – Glassnode
Notably, Bitcoin's hash price — the expected value of 1 terahash of hashing power — fell to an all-time low of $46.55, down 74% from its post-halving high, according to the Hashrate index.
Bitcoin price currently sits at $60,400, down 18% from its March 14 all-time high of $73,700, according to TradingView data.
Similarly, the second-largest Ether (ETH) is down 26% from its annual high of $4,070 on March 12.
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