Bitcoin mining – Here’s why this group is still holding as BTC falls below $70K

The Bitcoin miner reserve has increased to its highest level since April.
BTC has fallen below $70K once again.

As an experienced financial analyst, I find it intriguing to observe the recent trends in the Bitcoin mining industry. The decrease in mining difficulty and revenue decline may seem concerning at first glance, but miners’ decision to hold onto their reserves despite these challenges is a testament to their long-term belief in Bitcoin’s value.

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Recently, Bitcoin [BTC] mining difficulty has decreased, but miners’ revenue has also declined.

In spite of a decline in income, Bitcoin miners continue to keep their holdings instead of selling them off, even as the value of Bitcoin drops beneath $70,000. Their current strategy is to hang on to their Bitcoin.

Bitcoin mining revenue and difficulty declines

Based on information from Blockchain.com, the Bitcoin mining difficulty has stayed constant for an extended period.

The trend in the chart indicates that the level of difficulty started dropping around May 7th and persisted until May 10th. Subsequently, it has remained relatively constant.

Solving the block puzzle to expand it takes less time and fewer resources now.

Approximately 30 days ago, BTC miner revenue reached a high of around $107 million. However, there was a significant drop since then, and it fell down to approximately $26.4 million by the 1st of May.

At the moment of publication, the company was making efforts to bounce back, possibly fueled by Bitcoin’s recent price surge, with a revenue figure of approximately $34.1 million. This amount is roughly equivalent to what it had earned in December 2023.

Miner reserve increase in value

According to AMBCrypto’s examination, the Bitcoin miner stash has stayed relatively unchanged in recent days, hovering near the 1.816 million BTC mark as of now.

The reserve’s level has remained constant since May 6th, with only occasional drops.

Lately, there’s been a notable jump in the value of this reserve. The graph indicates that its worth went from around $120 billion to over $129 billion by May 20th.

As of this writing, the reserve’s value is around $129.2 billion.

Bitcoin falls below $70k

The rising value of Bitcoin miners’ reserves can be attributed to the significant hike in Bitcoin’s prices. Specifically, on May 20th, BTC‘s price experienced a noticeable surge from approximately $66,000 to above $71,000 – marking an increase of over 7%.

Read Bitcoin’s [BTC] Price Prediction 2024-25

At the moment of publication, Bitcoin (BTC) was around $69,000, representing a 2% decrease over the previous 24-hour period.

Within this price range, the worth of miners’ cryptocurrency stashes has grown, irrespective of noticeable additions to their holdings.

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2024-05-22 09:11