Bitcoin miners suffer at 12 years of low – but why don’t they sell?

• Bitcoin total fees hit a 12-year-old low and weighs strongly on miners profitability.
• Pual multiple at 1.2 proposed miners earn 20% over long -term averages.

With Bitcoin (BTC) When he floats close to $ 107K, both short -term and long -term holders remain comfortably in profit.

But miners? They grind through one of their toughest cycles in over a decade.

3 Reasons why Bitcoin miners record low profits

According to AlFrakalThere are three main reasons why miners are historically low.

For starters, the total fees paid in the Bitcoin network at its lowest levels since 2012. At a 12-year low fees, this reduction in the fees is mainly driven by the low chain’s activity this cycle.

As a network activity on the chain decreases, it means that reduced revenue for miners, which are currently being witnessed on the market.

At the same time, the hash frequency has dipped, but difficulties have not done so. It is unusual.

The network has not been adjusted yet and puts a tighter clamp on the margins. This is likely to be caused by large mining operations being shut down by ASIC machines over falling revenue and low demand for networks.

Usually, high hash frequency vollatility is a red flag for network consequence and miners’ uncertainty. As a result, miners see a downward difficulty adjustment where ineffective miners are forced out of the market.

Bitcoin miners still don’t sell

Interestingly, while the mining business is challenging, miners have not started selling.

According to the Cryptoquant data, miners fell to exchange for a monthly low low of 795.5 BTC from June 29. It is a clear indication that miners hold, even when underwater.

That said, what is remarkable is a dramatic change from previous cycles.

During the latest cycles, miners were sold as prices rise and during periods of high blockchain activity. This time they stop despite high BTC prices and low network activity.

So … why don’t they sell?

It boils down to one thing: no strong reason for.

Although the profit is down, miners still make enough to stay afloat. The multiple that was multiple at 1.2, which means that mining revenue is 20% above historical averages, despite poor market conditions.

Prize print at BTC?

Without a doubt, reduced sales of significant market operators, such as miners, are a precursor at higher prices. When this group stops selling, it lightens down pressure on BTC, which creates a more stable environment for further growth.

Therefore, if miners continue to keep their bitcoin, regardless of the challenging mining conditions, it sets up for further profits. That said, if these circumstances remain, BTC will try to break out of its current consolidation and target $ 109,000.

But if miners find incentives to sell, it will result in higher sales pressure and thus cause downward pressure on BTC.

In this case, a division from the recent upward will occur, leading to a retracing to $ 104,000.