The Bitcoin mining industry took a severe blow in 2022. Many miners exited the BTC network due to inflation, geopolitical worries, and massive price plummets.
Why? Primarily to reduce losses. Now, the community has raised questions regarding the profitability of the business. Let us find out more.
Some Relief?
The Block’s Research revealed that BTC miners made revenue of over $15 billion in 2021. That indicated a 206% Y/Y staggering increase. However, the narrative deteriorated in 2022. Nevertheless, fighting miners could have something to check amid that current (gradual) market recovery.
BTC mining difficulty has seen adjustments for a while. Mining difficulty resorted to downtrends as hashrate faded as miners hut their operations, citing declining profitability. While publishing this post, the plunging difficulty level stood at 27.69 T.
However, what could be different this time? First and foremost, the mentioned drop matched some recovery within the marketplace.
While publishing this post, BTC’s price stayed well above the $23K level, following the latest uptrends. That means increased cash flow on mined BTC for the miners. That’s indeed a relief within the industry.
Also, the surge in miners’ Bitcoin balance might reveal a rather attractive case. That’s the narrative here. Despite the ongoing chaos in the market, Miners’ Bitcoin balance touched four-year highs.
Also, a graph by Glassnode appeared to support such cases. In total, firms mined the initial tokens own 1,845,303 $BTC, 9.6% of the present Bitcoin supply.
Sunshine and Rain
Though these developments indicate a stable uplift, BTC miners are yet to escape the woods. Moreover, the net miner revenue maintained downtrends during this publication.
However, miners could continue operating until a bull market emerges if BTC stretches recovery and difficulty drops. Remember, address with more than 10K BTC coins have increased substantially since the month started.
The crypto market battled bearishness while publishing this blog. Downtrends seem to join the space following the latest decent rally.
BTC appears weak beyond $23K, changing hands at $23,285, dropping 2.09% within the past day. Also, Ethereum struggled to keep $1.7K, trading at $1,681.
Stay tuned for upcoming crypto news.