The post Bitcoin Miners Face Toughest Revenue Drop in 11 Months: Is a Major Sell-Off Looming? appeared first on Coinpedia Fintech News
Bitcoin miners experienced their worst revenue month in nearly a year during August, marking the lowest earnings since September 2023. Miner’s revenue plummeted by 57% from the peak of 2024, raising concerns about potential future sell-offs in the Bitcoin market.
Meanwhile, stablecoin exchange inflows are nearing all-time lows, adding more pressure on Bitcoin’s price.
Bitcoin Miner Revenue Hits a Low
According to Bitbo data, miners earned $827.56 million in August, down 10.5% from July’s $927.35 million. This marks the lowest monthly revenue since September 2023, when earnings were $727.79 million.
The situation is even more striking when compared to earlier this year. August’s revenue is still 57% lower than the peak of $1.93 billion reached in March 2024, when Bitcoin hit its all-time high of over $73,500. This sharp decline is likely due to the recent Bitcoin halving event, which has put extra pressure on miners.
The current decline mirrors the situation in September 2023, when miners earned $727.79 million, with Bitcoin trading around $25,000. As of now, Bitcoin is priced at $58,472, with a market cap of $1.15 trillion.
Miners Struggle as Difficulty Soars
In August, revenue dropped significantly due to falling transaction volumes and rising mining difficulty. The difficulty level reached an all-time high of 89.47 trillion in August, up from 86.87 trillion in July. The increased difficulty has made mining less profitable, prompting some miners to shift their focus to artificial intelligence projects.
Additionally, the amount of Bitcoin mined fell from about 14,725 BTC in July to 13,843 BTC in August. This drop comes after April’s Bitcoin halving reduced block rewards by 50%, from 6.25 BTC to 3.125 BTC. The combination of these factors is putting extra strain on Bitcoin miners.
Bitcoin Price Under Immense Pressure
Meanwhile, prominent crypto analyst Ali Martinez reports that miners sold 2,655 BTC over the weekend, worth approximately $154 million. This large sell-off suggests a possible further decline in Bitcoin’s price as new coins enter the market and reduce demand.
#Bitcoin miners sold 2,655 $BTC over the weekend, worth around $154 million! pic.twitter.com/8VXDETcDdf
— Ali (@ali_charts) September 2, 2024
According to Coinpedia news report, Bitcoin has been struggling to stay above the $58,000 mark. The market may soon test the $56,000 support level, and if this level fails to hold, Bitcoin could drop further to the $52,000 support zone.
Adding to the concern, stablecoin exchange inflows are at near all-time low levels. This indicates that investors are hesitant to re-enter the market, potentially leading to a deeper price drop before confidence returns.
