When the data of Bitcoin mining difficulty is considered, there is a drastic drop from July 2021. As per the data, yesterday, on July 22, the Bitcoin mining difficulty has seen a drop of nearly 5%. This significant drop has in turn reduced the competition between miners for rewards.
The same percentage of decline was witnessed even in 2021, same time during the month of July. At the time of reporting, the Block height stands at 746,054 and the metrics showed 27.69 trillion, last seen in the month of March 2022.
Bitcoin Miners In Profit
This does suggest that Bitcoin’s network reliability is somewhere compromised. However, it also points towards the higher rewards that most of the miners will earn. For instance, at present, the Bitcoin’s profitability accounts for a monthly high of 0.107
Meanwhile, the Bitcoin price has gained $23,000 range, Bitcoin miners are looking out for getting rid of their holdings. ByteTree, an on-chain data provider, claims that the amount of Bitcoin that the miners are selling is way more than the Bitcoin that is generated. Below chart shows the data.
According to CryptoQuant statistics, the total miner reserve actually had one of its biggest drops the week before, highlighting the continuation of the liquidation pattern that solidified in June.
In fact, mining businesses have had a difficult time getting over this stage. For example, Compass Mining recently implemented pay rate reductions for its key executives and reduced staff count by 15% in order to navigate the still challenging market trends.
Simultaneously, the miner’s agony appears to have gradually eased. Expenditure has significantly decreased in the last 24hrs, leaving a favorable net supply of 142 BTC. In addition, over the past several days, miner reserves started a new direction and noticed a slight increase from 1.840 million BTC to 1.841 million BTC.