The Revenues of Bitcoin Mining Companies are Declining, Yet They are Not Selling! What Does This Mean Historically?

Crypto analysis company Alphractal published a remarkable evaluation related to the Bitcoin mining sector.

The report states that miners have not sold their Bitcoin reserves despite facing historically low profitability.

The total transaction fees paid on the Bitcoin network have dropped to their lowest levels since 2012. This situation is attributed to the significantly low on-chain activity during this cycle, seriously reducing miner revenues.

Despite the recent decrease in hash rate, no adjustment has yet been made to the network difficulty. This delay further narrows miners' margins and delays the network's return to balance.

The Bitcoin network is experiencing the highest fluctuations in hash rate in its history. This situation is believed to be caused by some large mining operations shutting down their ASIC devices. The reasons cited are declining revenues and decreasing network demand.

Despite the challenging mining conditions, the fact that miners have not yet sold their reserves is considered a positive signal. According to Alphractal, some mining pools may have scaled back their operations in parallel with the decrease in global chain usage. During this period when Bitcoin is trading above $107,000, it is believed that miners are reallocating their hash power according to current demand.

According to the analysis company, in past cycles, miners generally sold during periods when prices rose rapidly and network activity increased. However, currently both factors are at low levels. This indicates that the market may be in a "consolidation" process rather than a "capitulation".

*It is not investment advice.

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