The Bitcoin mining trade has grappled with dwindling revenues for the reason that final halving occasion in 2024, which noticed miners’ reward drop from 6.25 BTC to three.125 BTC. On prime of this, the mining problem has continued to climb, making it tougher to safe the Bitcoin community.
Despite the rising value of BTC over the previous yr, the miners have struggled to stay worthwhile whereas securing the world’s largest blockchain. A crypto skilled has shared insights into the Bitcoin mining trade over the previous few months within the present cycle.
Miners Could Be Forced To Shed BTC Holdings: Crypto CEO
In a September 5 put up on the X platform, Alphractal founder and CEO Joao Wedson mentioned the Bitcoin mining panorama with insights from current on-chain knowledge. According to the on-chain analyst, the BTC mining sector has appeared a bit unstable thus far within the yr 2025.
Wedson attributed the Bitcoin mining trade’s struggles partly to the excessive value of BTC, which surged by nearly 100% for the reason that final halving occasion. The premier cryptocurrency is believed to be extremely valued in comparison with what the blockchain validators earned through the peak years of 2017 and 2021.
According to the Alphractal founder, the mixture of rising hash fee and low on-chain quantity has added to the competitors for successful blocks on the BTC networks. These less-than-optimal circumstances create further strain, forcing miners to put money into costly trendy tools to compete.
To put issues into an on-chain perspective, Wedson highlighted the Mining Equilibrium Index (MEI), which measures present mining profitability towards historic averages (a ratio of short-term to long-term mining income effectivity). This metric works by evaluating the 30-day common income per hash to the 365-day common.
The Alphractal founder shared that the MEI metric staying above 1 alerts above-average mining circumstances. Meanwhile, when this index falls beneath 0.5, it suggests a struggling mining trade, which might be linked to capitulation or hashrate changes.
Source: @joao_wedson on X
Wedson revealed that the Mining Equilibrium Index presently stands round 1.06, which is properly above the harassed mining ranges the place miners can not maintain operations. However, the on-chain knowledge skilled famous that the present degree can be beneath the highs of two.5 seen between 2017 and 2021.
With the rising competitors and operational value of securing the Bitcoin community, Wedson revealed that miners could be pressured to offload a few of their BTC holdings. Ultimately, this might put some downward strain on the value of the flagship cryptocurrency.
Bitcoin Price At A Glance
As of this writing, the value of BTC stands at round $110,700, reflecting no vital motion previously day. However, the market chief appears to be making a restoration of some kind, leaping by practically 3% previously seven days.
The value of BTC on the day by day timeframe | Source: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
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