Bitcoin miners reportedly sold tokens worth over $154 million. It is believed that portfolios shed almost 2,655 BTC. The precise reason is a decline in Bitcoin miners’ revenue. The trend was anticipated a few days ago when it was observed that the revenue was experiencing a significant decline. In July 2024, the mining industry generated $927.35 million in revenue. This decreased by approximately 10.5% when August’s revenue reached $827.56 million.
It is reasonable to anticipate that the numbers for August are marginally lower; however, they are significantly lower when the peak of 2024 is considered. According to Bitbo data, the downward trajectory is estimated to be approximately 57%, despite a 5% increase since August 2023.
This has raised questions about miner capitulation. It was believed that the trend has left the ecosystem; however, it could still be on the horizon. Another major sell-off is likely in the future. This is primarily a prediction that has gained traction since Bitcoin Halving happened in April this year. The process essentially cut Bitcoin miners’ rewards in half. Thereby, putting control over the supply of the flagship token.
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Bitcoin miners are now considering diverting their attention to another space that fetches results for the computational power they invest. Most of them are headed toward the artificial intelligence industry. Participants, Bitcoin Miners, were not earlier looked at as sellers of the token. The idea for staying engaged in the activity was to cover operational costs. Now that the rewards are down by half, it is increasingly difficult for them to cover operational costs.
However, the value of BTC has increased by 0.98% over the last 24 hours. At press time, it was exchanging hands for $58,531.47. It further reflects a drop of 8.42% in the last 7 days and 9.21% in the last 30 days. Chances are BTC will surge by 41.35% in the last 30 days to a value of $81,411.
A current trend depicted on the price chart may represent a buying opportunity for various investors. This stems from the assumption that the price will eventually rise if the Federal Reserve does proceed to cut rates by 25 bps. This is the same aspect that crypto enthusiasts are likely to see multiple times across all platforms. This is because it has been a long-standing investment in risky assets by investors who lack borrowing power. A rate cut would fundamentally boost that capability, injecting more funds into the crypto market.
Multiple factors, including reduced profitability, general selling pressure, and diversification into the artificial intelligence (AI) segment, lead Bitcoin miners to sell their shares.
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Marathon Digital, one of the Bitcoin mining firms, has adopted the MicroStrategy playbook. Its diversification now includes convertible notes worth $250 million to buy BTC in the Open Market. Players like Vortex Brands have adopted the approach of directly buying MicroStrategy shares to place a proxy bet on Bitcoin tokens.
