Cryptocurrency Analytics Company Alphractal has released a prominent evaluation of the Bitcoin mining industry.
The report notes that miners have not sold Bitcoin reserves despite historically low profitability.
Total transaction fees paid on the Bitcoin Network have fallen to their lowest levels since 2012. This is due to the fact that this cycle was very low and significantly reduced the miners’ revenues.
Despite recent declines in hashrates, network difficulty has not yet been adjusted. This delay further narrows the miner’s margins and slows the network from reaching balance.
The Bitcoin Network has experienced the highest hashrate fluctuations in its history. This is thought to be cited as a result of declining revenues and lower network demand, as there are major mining operations to close ASIC devices.
The fact that miners have not yet sold reserves despite difficult mining conditions is considered a positive indication. According to Alphractal, some mining pools may have reduced their activity in line with reduced global chain usage. With Bitcoin trading exceeding $107,000, it is believed that miners are redistributing hash power based on current demand.
According to the analyst company, in past cycles, miners are usually sold during periods of rapid price increases and increased network activity. However, both factors are currently at a low level, suggesting that the market may be in a period of “adjustment” rather than “capitalization.”
*This is not investment advice.