$BTC The recent event #HalvingBTC has caused a significant shift in the landscape of miners' earnings, altering their strategies and potentially impacting the broader cryptocurrency market, according to new analysis.
As analytics firm Checkonchain highlighted in a#YouTubevideo, the recent halving event has significantly changed the sources of income for miners, affecting overall market dynamics.
Halving, which halves the block subsidy, forces miners to adapt their strategies. This reduction often leads to miners selling their accumulated bitcoins to cover operating costs, potentially triggering capitulation. However, once the market recovers, hash tapes—a metric indicating the strength of miners' earnings—usually reverse direction, suggesting increased profitability #miners .
Historically, miners have made money from both block subsidies and transaction fees. Halving has reduced block subsidies, resulting in reduced selling pressure, while the increase in fee income represents a positive trend.
Miners are proactive in the market, especially during bear markets when they sell Bitcoin to cope with financial problems. During bull markets, higher fee income allows miners to operate more sustainably.
The revenue multiplier #Miner's , which compares miners' current revenue to its annual moving average, offers valuable market insight. This metric helps gauge the level of stress or euphoria among miners, providing a clearer picture of market dynamics.
The net multiple, which is the ratio of the current price to the average price over the past 12 months, serves as an indicator of miner stress. A low net multiple means that miners are only earning a fraction of their annual income, indicating extreme stress.
Conversely, during bull markets, higher earnings encourage miners to sell more coins to satisfy shareholder demands. Hashrate inversion—a situation where the faster moving average of hashrate falls below long-term averages—signals stress among miners. Weaker miners may shut down operations when profitability declines, leading to these inversions.
While the current net multiple does not necessarily indicate capitulation, it does reflect a difficult environment. A 4% decline from the all-time high is relatively minor. There has recently been a hash tape inversion, suggesting stress among weaker miners.
As Panos on X analyst noted, #Bitcoin is currently struggling to hold its highs near the top of the previous market cycle, experiencing a significant sell-off. Meanwhile, altcoins are also weak, reflecting bearish sentiment in the broader market.
#Bitcoin miners, faced with financial pressure, sell a significant portion of their coins to cover operating costs, which increases selling pressure. This market scenario highlights the urgent need for buyers to step up and stabilize the market#ЛюбимыйТокен