On Saturday, Bitcoin dipped below $29,000 for the first time in June 2022 after a price drop of approximately 5% on 10 June. While BTC’s price is struggling to gain any sort of momentum, its hash rate is eyeing another all-time high above 230 Exahash.
According to the latest data published by Blockchain.com, the Bitcoin hash rate currently stands at around 226 Exahash. The figure has increased substantially since the start of June 2022. Additionally, the BTC network difficulty level has climbed in the past week.
However, miners are struggling with revenues. The difficulty level of 30.283t and declining prices have made it difficult for miners to maintain high revenues.
“We are seeing miner revenues decline substantially, despite the climbing difficulty. This suggests that miner operations have expanded, capital has been spent, and production costs have increased as revenues are falling off. As profit multiples compress across the board and financial stress increases, the highest probability is that the market is within the second and historically final capitulation phase of a Bitcoin bear market,” Glassnode noted in its weekly report.
Profitable Bitcoin Supply
Bitcoin miners are not the only ones facing the heat of BTC’s price dip. According to Glassnode, most of the BTC holders who have purchased the crypto asset in the last 18 months are currently facing unrealized losses. BTC’s short-term supply in a loss is currently oscillating between 16% and 18%.
“At the moment, almost 58% of the circulating supply is in profit while in the last three market capitulations this metric fell down to <50% levels. STH-Supply in profit is just 2.2% meaning the short-term holders are almost entirely at a loss. Meanwhile, LTHs have seen their share of profitable supply drop from 68.5% in April to 55.7% today, indicating they are currently shouldering much of the market's unrealized losses,” Glassnode explained.
