Bitcoin
Bitcoin Miners Navigate Capitulation Amid Shrinking Profit Margins
Bitcoin miners are currently facing significant “capitulation,” forcing them to innovate to earn additional revenue.
Bitcoin miner capitulation occurs when miners are forced to close due to lack of profitability or unsustainable operating costs. This can happen when the cost of mining (including electricity, hardware and operating expenses) exceeds the revenue generated by mining the lead asset.
Bitcoin Miners Face Economic Pressures Amid Capitulation
Data from CryptoQuant shows a 7.6% drop in Bitcoin Mining Hashrate this month, now resembling levels last seen during the FTX exchange collapse in December 2022. Unlike that period, today’s decline follows the recent Bitcoin halving, which cut miner rewards to 3,125 BTC.
Capitulation of Bitcoin miners. Source: CriptoQuant
Miners are also struggling with reduced revenues from alternative sources as network activity declines. Initially, they benefited from high rates during Bitcoin based Rune Protocol Frenzy post-halving. However, profits declined sharply as slow network activity.
On June 29, daily Rune transactions plummeted from a peak of over 753,000 on April 23 to 21,861, marking a drastic 90% drop. Consequently, miners’ total earnings from Rune transactions fell below 2 BTC last week, down from a peak of over 1,000 BTC on April 20.
See more information: How to Make Passive Income with Cryptocurrency Mining: How to Get Started
Rune Protocol Fees. Source: Dune Analysis
Facing these economic pressures, miners are shutting down their machines and have stepped up selling activities this month. Last week, BeInCrypto reported that miners unloaded approximately 30,000 BTC, valued at US$2 billion.
To further diversify revenue streams, miners are increasingly using artificial intelligence (AI) and another Proof of Work (PoW) assets. Companies like Core Scientific and Hut 8 have secured significant funding for AI expansion. Matthew Sigel, head of digital research at VanEck, reported that Morgan Stanley’s head of sustainability research Stephen Byrd explained that these moves show that miners see potential profitability in AI ventures amid evolving market dynamics.
“I respect the idea that Bitcoin mining can become more profitable. There’s a game theory here… the more people who leave Bitcoin mining and become data centers, the more attractive it is for those who remain,” Byrd reported. he said.
See more information: Top Cryptocurrency Mining Pools to Join in 2024
On the other hand, Marathon Digital, the largest BTC mining companyhe has announced its entry into Kaspa mining, a PoW project. The company stated that it has mined 93 million KAS, valued at approximately $15 million as of June 25.
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Bitcoin has lost out on an asset rally fueled by positive comments from the Federal Reserve, while a tight US election race casts doubt on whether Donald Trump will get the chance to implement his pro-crypto agenda.
The digital asset fell 2.4% on Wednesday, following a Fed-fueled surge in an index of megacap tech stocks Magnificent Seven by one of the largest margins in 2024. The token retreated further on Thursday, changing hands at $63,750 as of 6:10 a.m. in London.
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‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
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Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
Forbes Digital Assets
Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
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Bitcoin (BTC) miner Riot Platforms (RIOT)’s second-quarter loss widens to $84.4 million as costs rise
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At a national bitcoin conference in Nashville, Donald Trump finally laid out some of his crypto policy proposals, including a long-awaited part of his plan — building a strategic bitcoin reserve. CNN’s Jon Sarlin explains what it is and why the crypto industry wants it.
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