Bitcoin’s price has dropped to $63,000 as miners offload over $2 billion worth of BTC, facing unprecedented challenges post-halving.
Impact of April 19 Halving on Bitcoin Miners
The April 19 Bitcoin halving has drastically altered the mining landscape, reducing block rewards and profits by half. This significant event has led many miners to reassess the viability of their operations, with a substantial number deciding to shut down.
Miners Struggle with Reduced Rewards
The halving has introduced a new era of scarcity but has also imposed severe difficulties for miners. The reduction in rewards and revenues per block has forced many to cease operations, contributing to a notable decline in Bitcoin’s mining difficulty from 88.1 trillion hashes to 83 trillion hashes.
Revenue per terahash per second (TH/s) has hit record lows, dropping from $0.12 pre-halving to $0.05, a decrease of 58%. Total daily mining revenue has also seen a dramatic fall, from $107 million to $29.9 million.
Despite expectations that increased transaction fees from protocols like Ordinals and Rune would offset reduced block rewards, miners have struggled to maintain profitability. This financial strain has led to a significant sell-off, with miners unloading over 30,000 BTC, valued at nearly $2 billion, since June, impacting Bitcoin’s price performance.
Bitcoin’s Price Struggles Amid Miner Sell-Off
Bitcoin’s price has been caught between bullish institutional interest and bearish miner sell-offs. Institutional buyers like BlackRock have been accumulating BTC, with their assets under management exceeding $20 billion in the past month. Despite this, the massive sell-off by miners has kept the price under pressure.
Earlier this month, Bitcoin approached its all-time high of $73,000, driven by momentum from Ethereum ETF approvals and institutional investments. However, it has struggled to sustain levels above $69,000, repeatedly retreating to around $65,000. The recent sell-off pushed Bitcoin down to $63,000.
Future Outlook for Bitcoin
While Bitcoin’s current price action may seem stagnant, there is potential for recovery. Upcoming Ethereum ETF approvals could inject new momentum into the market, potentially driving BTC beyond its all-time high and towards the $80,000 mark.