Bitcoin network Strength Hits New High,Miners Sell More BTC
Bitcoin’s computing power reached an all-time high in early April. The hashrate hit 1 sextillion hashes per second, according to BitInfoCharts. This shows the network is stronger than ever. However,miners are selling more Bitcoin to cover costs.
Despite the network’s strength, miner revenue is under pressure. In March, their earnings dropped nearly 50% from the same time last year, to about $1.2 billion.This data comes from newhedge.miners get rewards from block subsidies and transaction fees. But with the recent halving, block rewards are now 3.125 BTC per block. Low fees and frequently enough empty blocks mean shrinking profit margins. Miners sold over 40% of their production in March, the highest as October 2024.Some firms,like HIVE and Bitfarms,sold more than their entire production. This is due to low fees and a weak hashprice. The halving in April cut rewards, making fees more critically important. Yet, fees remain low.
Publicly traded miners sold more than 40% of their Bitcoin in March. This is a sign of financial stress. The Newhedge data shows.
Miners earn from block subsidies and fees. but with the halving, rewards are now 3.125 BTC per block. Low fees and empty blocks mean less money. Public miners sold over 40% of their production in March,the highest since October 2024. Some,like HIVE and Bitfarms,sold more than 100%.
Miners are adapting to stay profitable.The TheMinerMag report suggests miners are selling more BTC to cope with low profits and trade war uncertainty.
