On-chain analytics platform, Glassnode, reports In a newsletter that Bitcoin miners revenue has continued to drop, while production cost surges, as market condition stays bearish and long term holders suffer loss.

BTC Miners add to selling pressure

With the use of a market metric called The Puell Multiple, a valuation tool that calculates the ratio of the daily issuance value of bitcoin (in USD) to the 365-day moving average of this value, Glassnode attempts to estimate the value of the market from a miner’s viewpoint.

At a later stage of a drawn out bear market where capitulation could take place, the Puell Multiple plunges to sub-0.5 zone. Presently, this metric sits at 0.66, a crucial point that could lead to capitulation range.

According to the analysis done by Glassnode, miner balances are reducing and miners are spending extra, the Miner Net Position Change currently indicates an aggregate miner balance reduction of between 5k and 8k BTC monthly.

This goes to show an alteration in miner behaviour, their balance which had previously seen a buildup of around 12k BTC during the first drawdown from ATH. BTC Miners have however been adding to BTC selling pressure, analysis shows, since Luna LFG sold over 80k BTC. 

Bitcoin Mining pressure due to income decline

Data suggests that mining activities have grown immensely, and cost of production has surged, capital is being pumped into the industry, however, mining revenue is declining significantly. The market currently trades between a weekly high of $31,900 and a low of $29,375, the first sign of a green market following nine weeks of a red market, continuous doubt and stress in the market has led to reliance on Long-Term Holders.

Mining is now more expensive, rewards offered in USD continue to drop and may lead to a potential miner capitulation cycle ahead. There is reason to believe that the market is within the second and final capitulation phase of a Bitcoin bear market.

Existing miners have widened their operations, and new miners have joined the network despite the massive revenue stress. Money spent on mining hardware and facilities could add subsequent pressure to miners’ balance sheets.

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