Data shows the already struggling Bitcoin miners have received another blow this week as their revenues have plunged by 15%.
Bitcoin Daily Miner Revenues Sharply Declined Following Price Crash
As per data from the latest weekly Arcane Research report, the daily mining incomes have dropped to just $16.3 million now.
The “daily miner revenues” are calculated by multiplying the total amount of Bitcoin that miners get in block rewards and transaction fees each day, with the current price of the crypto.
Since the block rewards are mostly fixed, the revenues mainly depend on the price and the transaction fees.
However, the fees has been at a very low level on the BTC network for quite some while now, and makes up a pretty small percentage of the total mining revenues.
So, in practice miners depend only on the BTC price for their revenues. Here is a table that shows how the miner-related metrics have changed recently:
Looks like the average transaction value has shot up by more than 68% during the period | Source: Arcane Research's Ahead of the Curve - November 15
As you can see above, in the 7 days that followed the crash caused by the FTX collapse, the Bitcoin daily miner revenues dropped by around 14.7%, reaching a value of just $16.3 million.
In this period, the fees per day actually rose by 2.2%, reaching a value of $348.5k. However, since this value is only 2.1% of the total revenues, this rise could hardly impact the drop in incomes caused by the price crash.
Many miners had already been under extreme pressure before this latest crash even arrived, due to a number of reasons.
The main factors at play have been the bear market and the rising energy prices. This bear has been long and has brought with it a deep price decline, resulting in miner revenues dipping to very low values.
The electricity costs are basically the only operational expenses that miners face, and hence their profits are dependent on them.
However, as the energy prices have risen high around the world this year, they have put a sharp cut on miners’ profits, and have even made mining unviable for some miners altogether.
The latest plunge in the mining revenues is bound to have been the final blow for many of these struggling miners, and it’s no wonder that these chain validators have been dumping their coins hard during the past week.
At the time of writing, Bitcoin is trading around $16.5k, down 5% in the last week.
BTC continues to display flat price action | Source: BTCUSD on TradingView
Featured image from mana5280 on Unsplash.com, charts from TradingView.com, Arcane Research