Bitcoin miners remain steady despite no signs of a complete selloff

According to a cryptocurrency analyst, Bitcoin miners are facing rising operational costs and lower rewards, but the situation is not catastrophic. Glassnode lead analyst James Check, also known as “Checkmatey,” explained that the network is experiencing a hash ribbon inversion, which means that blocks are being found slightly slower due to less hash rate online. Check stated that about 5% of mining hashrate is struggling at the moment, but this is not a complete and total firesale. The decline in hash rate can be attributed to several reasons, including increased operational costs, a decline in Bitcoin’s price, or equipment issues among miners. The Bitcoin Halving on April 20 also reduced mining rewards to 3.125 BTC from 6.25 BTC, causing some mining firms to turn off unprofitable mining rigs. Despite the challenges, Check suggested that miners may be breaking even as they mine new Bitcoins to cover operational costs. Additionally, Bitcoin miners are selling most of their coins to pay the bills, and transaction fees represent an increasingly large proportion of miner revenues.