Bitcoin Miner Revenues Now 61% Lower Than Past Year Average

Share This Post

Data shows Bitcoin miner revenues have been coming under stress recently as they are now making 61% less than the average during the last year.

Bitcoin Miner Revenues Come Under Pressure As Puell Multiple Sharply Drops

As per the latest weekly report from Glassnode, the miner income contraction right now is greater than during the Great Migration of May-July 2021.

The “Puell Multiple” is an indicator that measures the ratio between the daily Bitcoin miner income in USD, to the 365-day moving average of the same.

When the value of this metric is high, it means miner revenues are higher than the past year’s average at the moment.

During such periods, miners may choose to expand their mining rig capacity and sell some of their reserves to take advantage of the current high profitability.

On the other hand, low values of the ratio suggest the daily coin issuance is lesser than the yearly average right now.

Related Reading | Glassnode: $7B In Bitcoin Losses Realized In Just Three Days, Highest In BTC History

Some miners may react to low income periods like these by taking off their machines offline in order to save on electricity costs.

Now, here is a chart that shows the trend in the Bitcoin Puell Multiple over the last few years:

Bitcoin Miner Revenues - Puell Multiple

The value of the indicator looks to have dropped down recently | Source: Glassnode's The Week Onchain - Week 25, 2022

As you can see in the above graph, the Bitcoin Puell Multiple’s value has observed some sharp decline in recent days, hinting that miner revenues have been coming under stress.

Right now, the value of the metric suggests miners are earning 61% less than the average during the last 365 days.

Related Reading | Profit From Bitcoin’s Collapse? New ProShares ETF Makes It Possible

The chart also includes data for another indicator, the difficulty ribbon compression. This metric tells us about how the mining difficulty is changing right now.

This indicator suggests the cost of Bitcoin production has gone up recently, providing further evidence for the shrinking miner revenues.

The current miner income stress has already surpassed that during the Great Migration in May-July 2021, where China’s mining ban forced miners out of the country.

The revenue contraction is also worse than during the COVID-19 crash, but Bitcoin miners still had it worse in the 2014-15 and 2018-19 bear markets.

BTC Price

At the time of writing, Bitcoin’s price floats around $21k, down 4% in the last seven days. Over the past month, the crypto has lost 28% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

Looks like the value of the crypto has been climbing up over the last few days | Source: BTCUSD on TradingView
Featured image from Mariia Shalabaieva on Unsplash.com, charts from TradingView.com, Glassnode.com
Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

SocialFi super app Phaver launches SOCIAL token airdrop rewarding Lens, Farcaster users

SocialFi app Phaver launched its Phavercoin (SOCIAL) token today, initiating the Phairdrop event that marks the platform’s transition to a token-powered decentralized social ecosystem The token

Polymarket Gears Up For $50 Million Raise And Potential Token Debut

Polymarket, a decentralized prediction market platform, is reportedly seeking to secure $50 million in a new funding round and is considering launching its own token This potential development could

Russia Pushes for Sustainable BRICS Interbank Networks and Payment Systems

Russia is pushing to develop independent interbank networks and payment systems within BRICS to boost the bloc’s financial influence Moscow aims to expand cross-border settlements and the use of

Analyst Warns Of Short Squeeze as Bitcoin Futures Market Heats Up

The Bitcoin futures market is seeing a rise in leverage, which may signal an impending short squeeze that could lead to a bullish rally, according to a recent report by a CryptoQuant analyst, known

Ethereum price surge lifts Lido TVL by 10% despite 26k ETH withdrawals

Lido Finance reported that its total value locked (TVL) increased by 1083% over the past week, reaching $2518 billion as of Sept 23 This growth is primarily attributed to a rise in Ethereum’s

$1 Milestone For Dogecoin Looms: Market Expert Reveals Shocking Timeline

The early aftermath of the recent Federal Reserve (Fed) interest rate cuts has been positive for the general crypto industry as major assets like Dogecoin have been displaying optimistic sentiment