Crypto industry events for 2022 have not been favorable to Bitcoin miners. They have experienced a significant decrease in operations which has caused their income to drop dramatically. With more frustrating events lined up, it looks like the future has gotten thinner.
During the crypto winter of May and June, BTC miners posted losses and were unable to repay loans. A report on the net flow of miners showed that the trend had been unpleasant. The new August data marks the fourth consecutive month of negative flows for miners.
According to the report of the latest edition of CryptoCompare’s Asset, April is the only month that miners profited with BTC this year. The report noted that miners had been forced to start selling until August to offset operating costs. It indicated that net withdrawals from miners had reached 21.3k BTC.
August was unfavorable for Bitcoin miners
In August, the main cryptocurrency managed to reach $24,000 in value. Over the course of the month, BTC experienced several price swings throughout the weeks. There were trade prices below and above $20,000.
Additionally, Bitcoin recorded a 5.28% increase in hash rate as it reached 212 million TH/s. Therefore, BTC miners had to sell their holdings for sustainability.
Several Bitcoin mining companies have not had it easy in August. For example, Stronghold, a mining company, disclosed its deal with New York Digital Investment Group (NYDIG), a lender and broker. The company will return about 26,200 mining rigs to NYDIG to discharge its $67.4 million debt.
Miners increased and held their position from some small Bitcoin bullish trends in recent months. As a result, they managed to collect some profits despite the numerous crisis of the year that seemed very entrenched without slowing down.
Miners revealed that they posted more gains during the uptrend of 2021. But the bearish crypto market of 2022 is wiping out almost everything they had accumulated. They are left with few or no tokens to dispose of for their continuation.
Improved BTC network activity
Despite the decrease in miner data, Bitcoin network activity is improving. CryptoCompare reported that BTC transaction volume reached $2.39 trillion through a 10.5% increase. In addition, the number of transactions reached 7.82 million, an increase of 1.80%.
Additionally, there is a 4.47% increase in active addresses to reach 916k. The number of new addresses reached 395k showing an increase of 2.10%.
However, Bitcoin saw a drop in its monthly transaction fees in August to 410 BTC, a drop of 27.0%. Therefore, there is a decrease in their average transaction fees to 5,190 Satoshis by 28.2%.
Featured image from Pexels, chart from TradingView.com
