Bitcoin market’s next move – Watch THESE miner signals for clues
The post Bitcoin market’s next move – Watch THESE miner signals for clues appeared on BitcoinEthereumNews.com. The Bitcoin market feels pinned between strength and hesitation. Miners just recorded their best month post-halving, pulling in $1.52 billion in May revenue. The Bitcoin [BTC] market feels like it’s stuck in limbo. Prices are strong, but the momentum just isn’t convincing. It almost feels like one move and BTC could erase all its May gains, dropping back below six figures. With so much at stake, caution seems like the smartest play. But unlike the broader Bitcoin market, there’s one sector sitting on fat margins – miners. Their production costs are way lower than Bitcoin’s current price, giving them outsized profits. Historically, miners have been quick to lock in gains when the pressure’s on. So while the market waits, should we be watching the miners more closely? Mining economics post-halving After the April 2024 halving, miners saw their rewards get cut from 6.25 to 3.125 BTC overnight, and that hit hard. The thing is, while rewards drop in half every four years, the cost of mining a block doesn’t get cheaper. You’re burning the same power, paying the same bills, but now earning half as much per block. Naturally, this sent the Average Mining Costs soaring. By late April, it rocketed to around $90,000 per BTC, while the price stubbornly sat near $60k. That mismatch created a loop of sideways action, with the Bitcoin market trapped in a tight range. Source: MacroMicro Why? Because what comes post-halving is a classic miner playbook: Reserves deplete, Bitcoin market takes a dip, and miner revenue starts to bleed. In other words, the mounting pressure forces miners to bail before their profit margins (BTC’s spot price – production cost) get crushed even harder, accelerating a full-blown miner capitulation phase. Bitcoin market stuck in limbo, miners racing ahead A year out from the fourth…
The post Bitcoin market’s next move – Watch THESE miner signals for clues appeared on BitcoinEthereumNews.com.
The Bitcoin market feels pinned between strength and hesitation. Miners just recorded their best month post-halving, pulling in $1.52 billion in May revenue. The Bitcoin [BTC] market feels like it’s stuck in limbo. Prices are strong, but the momentum just isn’t convincing. It almost feels like one move and BTC could erase all its May gains, dropping back below six figures. With so much at stake, caution seems like the smartest play. But unlike the broader Bitcoin market, there’s one sector sitting on fat margins – miners. Their production costs are way lower than Bitcoin’s current price, giving them outsized profits. Historically, miners have been quick to lock in gains when the pressure’s on. So while the market waits, should we be watching the miners more closely? Mining economics post-halving After the April 2024 halving, miners saw their rewards get cut from 6.25 to 3.125 BTC overnight, and that hit hard. The thing is, while rewards drop in half every four years, the cost of mining a block doesn’t get cheaper. You’re burning the same power, paying the same bills, but now earning half as much per block. Naturally, this sent the Average Mining Costs soaring. By late April, it rocketed to around $90,000 per BTC, while the price stubbornly sat near $60k. That mismatch created a loop of sideways action, with the Bitcoin market trapped in a tight range. Source: MacroMicro Why? Because what comes post-halving is a classic miner playbook: Reserves deplete, Bitcoin market takes a dip, and miner revenue starts to bleed. In other words, the mounting pressure forces miners to bail before their profit margins (BTC’s spot price – production cost) get crushed even harder, accelerating a full-blown miner capitulation phase. Bitcoin market stuck in limbo, miners racing ahead A year out from the fourth…
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