The price of Bitcoin (BTC), the biggest cryptocurrency in the world, has recently been hovering around the $19,200 mark in a very narrow range. On the one hand, Bitcoin miners must use more processing power to add new blocks to the blockchain because the hashrate is continuing to expand quickly.
Are having a difficult time making ends meet due to growing energy bills.
The price of Bitcoin (BTC), the biggest cryptocurrency in the world, has recently been hovering around the $19,200 mark in a very narrow range. On the one hand, Bitcoin miners must use more processing power to add new blocks to the blockchain because the hashrate is continuing to expand quickly.
Bitcoin miners have been earning razor-thin margins on their mining earnings while energy costs climb at the same rate. As we observed earlier this year, this may trigger a significant sell-off by Bitcoin miners once more.
In a research earlier this month, Arcane Research said that miner revenues have decreased by 81% from their peak in October 2021. Additionally, the vast majority of miners reported a decline in their gross margins from the 80%-90% range to 30%-40%.
Long-term Bitcoin holders, on the other hand, have demonstrated remarkable conviction even while the price of a hash of Bitcoin is reaching new lows.
According to analyst Mike McGlone, Bitcoin is about to reach a "unstoppable maturity stage." He thinks that despite the Fed raising interest rates this year, the price of bitcoin will keep rising.
It will be fascinating to observe if the long-term holders maintain the same level of faith if the Bitcoin miners start a selling process. At the time of publication, Bitcoin (BTC) is worth $372 billion and is trading at $19,330.
