- Bitcoin mining companies continue to innovate despite market volatility. Fees generated per transaction are declining.
- Holders see no selling pressure. MVRV ratio starts to decrease.
Although Bitcoin prices have risen steadily in recent months, the condition of miners has been relatively volatile. With rising costs and a fall in miners’ earnings, the future of miners has looked uncertain for quite some time.
Read Bitcoin [BTC] Price forecast 2023-2024
My me not
That hasn’t stopped mining companies from launching new products to better meet the needs of miners. Whatsminer, a mining hardware browsing provider, recently released iintroduced three new Bitcoin mining machines.
The M53S++ offers a high hash rate of 320 TH/s and a power efficiency of 22J/T, claiming to be the best performing mining machine available today. The other two models, M50S++ and M56S++, offer hash rates of 150 TH/s and 230 TH/s respectively, with different cooling methods (air cooling and immersion cooling).
The increasing efficiency of mining rigs and the continued interest of companies to make new developments in this sector indicated that a majority of the crypto space believes in the long-term prospects of Bitcoin mining.
However, miners must be on the receiving end of developments in the protocol. Michael Saylor, the founder of MicroStrategy, mention that long-term success for Bitcoin miners is critical to the network.
As new technologies such as Ordinals are developed on the protocol, activity on the network increases. This allows Bitcoin miners to generate fees for these transactions. While there has been a lot of activity on the Bitcoin network, the fees collected by miners per transaction have declined according to data from Blockchain.com.
This drop in fees collected is partly caused by the price correction that BTC has been experiencing in recent weeks.
Source: Blockchain.com
If the fees collected by miners per transaction continue to fall, the overall selling pressure on Bitcoin miners could rise. This can negatively affect the price of BTC.
Is your wallet green? Check out the Bitcoin Profit Calculator
Holders see no pressure
However, BTC holders did not have the same selling pressure as the miners. According to data from Santiment, the MVRV ratio for holders has dropped significantly. This indicated that BTC had exited overbought territory. It also showed that many holders would not be profitable if they decided to sell at the time of going to press.
Source: Sentiment
