- Bitcoin hash rate is at an all-time high and competition for block rewards is fierce.
- Miners’ earnings are down and selling pressure could increase anytime soon.
Bitcoin hash rate reached a new all-time high recently. This increase in the hash rate means that more miners are participating to keep the network secure and more decentralized. But it also means that competition for block rewards is becoming fiercer and some miners are likely to be pushed out of the market.
Miners face uncertainty
One of the reasons for the growing tension among bitcoin miners is the miners’ low earnings. As the hash rate increases, new blocks become more difficult to mine, making it more difficult for miners to earn rewards. This has been exacerbated by a decrease in miner flow, which indicates a decrease in the rewards for miners.
How much is 1,10,100 BTC worth today
Miner flow is another metric that may increase due to the above factors. In this way, the prices of bitcoins are affected in some way.
Well, miner flow basically increases when miners sell mined bitcoins to cover expenses, pay off debts, or simply make a profit. As miners’ earnings decline, more miners may choose to sell their holdings, further depressing the Bitcoin price.
Calm down under pressure
But it will not be limited to miners looking to sell their holdings. Several bitcoin holders may also participate in the sale. This is because a large number of Bitcoin addresses have been observed to be profitable. According to the glass contract dataBitcoin addresses share of profits reached an 8-month high of 67.287%.
Read Bitcoin price predictions 2023-2024
However, at the time of writing, it has been observed that Bitcoin holders are not transferring any BTC. This was demonstrated by the decrease in the speed of BTC over the past month. Bitcoin’s daily active addresses remained flat during this period.
However, the price of bitcoin at the time of publication was $22,729.18, up by 0.61% over the past 24 hours. Despite rising tensions between miners and declining miners’ profits, the bitcoin price continues to rise.
However, it remains to be seen how the mining industry will adapt to the changing landscape and how ongoing tensions will affect the overall stability and security of the Bitcoin network.