For context, Bitcoin miners include individuals or entities that utilize computational power to validate transactions on the Bitcoin blockchain. They are rewarded with newly minted Bitcoin. Therefore, when miners sell their earned assets, it indicates a need to cover operational costs, such as equipment expenses and electricity costs.
According to Mempool, miners’ current difficulty adjustment level came at a block height of 860,832. This took the ATH from 90.67 trillion set earlier in July to a new peak of 92.67 trillion.
Meanwhile, Bitcoin miners’ revenue dropped after the April 20 halving event, which reduced rewards from 6.25 BTC to 3.125 BTC. This revenue dropped from $72.4 million to $25 million and $30 million, according to a seven-day moving average of 550.25 EH/s, as of the end of June.
The increasing mining cost and dwindling revenue have pushed some unable-to-compare miners out of the market. As reported by U.Today, Bitcoin’s price has to stay between $65,000 and $70,000 for mining to remain economically sustainable.
On the other hand, the effect of mining difficulty on the BTC price could be positive, as it signals that the network is more secure and boosts investors’ confidence.
At the time of writing, data shows Bitcoin traded for $55,689.03, a 2.13% drop in price in the last 24 hours. The Bitcoin community’s bullish sentiments have also dropped to 21% out of 51,341 people sampled.
This article was originally published on U.Today
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