After the profitability of mining has dropped since November, bitcoin miners are selling coins from their portfolios and shares in their companies.
Miners are selling at an inopportune time, with Bitcoin (BTC) currently trading about $43,500, almost 33% below the all-time high (ATH) of about $69,000 set that month. Electricity and equipment bills, on the other hand, must be paid. Bitcoin miners have turned net sellers after months of being net hodlers, according to data from on-chain analytics firm Glassnode.
According to statistics from blockchain research firm Arcane Research, the return on mining one BTC has plummeted by an average of 50.5 percent since Nov. 9 for the two most popular mining machines, the S9 and the S19. This suggests that the rate of return on investment has fallen faster than the price of BTC.
The lower profitability of mining has been attributed to a significant increase in hashrate. Because more devices have been turned on to compete for the next block, competition among miners increases proportionally with hashrate.
It’s a wrap for this story.
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