Bitcoin Miners Face Low Profitability, Yet Selling Pressure Remains Low

The current state of the Bitcoin mining industry is raising important discussions about sustainability and competition. Despite facing historically low profitability, miners are still holding onto their BTC reserves. Here are the key points:

1️⃣Transaction Fees at 12-Year Lows

Total fees paid on the Bitcoin network are at their lowest levels since 2012. This is strongly linked to the low on-chain activity this cycle, reducing miner revenues significantly.

2️⃣Low Miner Sell Pressure

The Miner Sell Pressure metric remains at low levels, indicating that miners are not aggressively selling their holdings despite declining profitability.

3️⃣Network Difficulty Still High

Although the hash rate has recently dropped, mining difficulty hasn't adjusted yet. This lag further squeezes miner margins and delays network equilibrium.

4️⃣Hash Rate Volatility Hits Record Highs

The Bitcoin network is experiencing the highest hash rate fluctuations in its history. This is likely caused by large mining operations shutting down ASIC machines, possibly due to falling revenues and low network demand.

While the mining environment is challenging, the fact that miners haven't started selling off their reserves is a positive sign. It’s likely that some mining pools have scaled down operations in response to reduced global usage of the Bitcoin blockchain. As BTC trades above $107K, we may simply be witnessing miners reallocating their hash power to adapt to the current demand.

In past cycles, miners typically sold during rapid price increases and periods of high blockchain activity. The current lack of both suggests a period of adjustment rather than capitulation. For now, it's a matter of closely monitoring the metrics.

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