{"id":11841,"date":"2024-05-17T02:38:55","date_gmt":"2024-05-17T02:38:55","guid":{"rendered":"https:\/\/www.bitrabo.com\/discover\/bitcoin-miners-under-distress-the-bullish-signal-you-cant-ignore\/"},"modified":"2024-05-17T02:40:34","modified_gmt":"2024-05-17T02:40:34","slug":"bitcoin-miners-in-a-tough-spot-a-promising-sign-to-consider","status":"publish","type":"post","link":"https:\/\/www.bitrabo.com\/discover\/bitcoin-miners-in-a-tough-spot-a-promising-sign-to-consider\/","title":{"rendered":"Bitcoin Miners in a Tough Spot: A Promising Sign to Consider"},"content":{"rendered":"\n<p>Recent on-chain data indicates that the Bitcoin Miner Price has dropped below the BTC Electrical Cost, marking the fifth occurrence of this event.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_Miners_Experience_a_Drop_Below_Electrical_Cost\"><\/span>Bitcoin Miners Experience a Drop Below Electrical Cost<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a recent post by Capriole Investments founder Charles Edwards, a significant development in the status of Bitcoin miners has been brought to light.<\/p>\n<p>Two key metrics are at play here: the Electrical Cost and the Miner Price. The Electrical Cost measures the daily expenses miners face in electricity to mine 1 BTC.<\/p>\n<p>The Miner Price tracks the revenue generated by 1 BTC for miners, which comprises block rewards and transaction fees.<\/p>\n<p>Block rewards are paid in BTC at a consistent rate, based solely on the cryptocurrency&#8217;s price. Meanwhile, transaction fees vary based on network activity levels.<\/p>\n<p>When the network is congested, high-fee transactions are prioritized due to limited capacity, ensuring quicker processing times at a higher cost.<\/p>\n<p>By dividing the total transaction fees by the mined BTC amount, Edwards&#8217; metric calculates the revenue attributed to 1 BTC, factoring in both block rewards and transaction fees.<\/p>\n<p>The recent trend in Bitcoin&#8217;s Electrical Cost and Miner Price over the past decade is illustrated in the chart below:<\/p>\n<p><\/p>\n<p>The chart indicates that the Bitcoin Miner Price has fallen below the Electrical Cost, implying that miners are not generating adequate revenue from 1 BTC to cover mining electricity expenses.<\/p>\n<p>Historically, when miners faced similar struggles, Bitcoin price experienced notable bullish momentum, a trend worth monitoring closely.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoins_Current_Price\"><\/span>Bitcoin&#8217;s Current Price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin recently surpassed $66,000 but has since retraced, with the price now hovering around $64,800.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium aligncenter\" src=\"https:\/\/www.bitrabo.com\/discover\/wp-content\/uploads\/2024\/05\/Bitcoin-Miners-Under-Distress-The-Bullish-Signal-You-Cant-Ignore\" alt=\"Bitcoin Price Chart\" width=\"1534\" height=\"854\" \/><\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recent on-chain data indicates that the Bitcoin Miner Price has dropped below the BTC Electrical Cost, marking the fifth occurrence of this event. Bitcoin Miners Experience a Drop Below Electrical Cost In a recent post by Capriole Investments founder Charles Edwards, a significant development in the status of Bitcoin miners has been brought to light. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11842,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"slim_seo":{"title":"Bitcoin Miners in a Tough Spot: A Promising Sign to Consider - Bitrabo","description":"Recent on-chain data indicates that the Bitcoin Miner Price has dropped below the BTC Electrical Cost, marking the fifth occurrence of this event. Bitcoin Miner"},"footnotes":""},"categories":[316],"tags":[448,446,4182,1853,1590,1361],"class_list":["post-11841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","tag-bitcoin","tag-bullish","tag-distress","tag-ignore","tag-miners","tag-signal"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/comments?post=11841"}],"version-history":[{"count":0,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/posts\/11841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media\/11842"}],"wp:attachment":[{"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/media?parent=11841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/categories?post=11841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitrabo.com\/discover\/wp-json\/wp\/v2\/tags?post=11841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}