Bitcoin miners reported their worst month in nearly a year in August, the lowest since September 2023. Miner profits plunged 57% from their 2024 highs, raising concerns about a potential future selloff in the Bitcoin market.
Meanwhile, inflows into stablecoin exchanges are nearing all-time lows, putting further pressure on Bitcoin prices.
Bitcoin miner profits have fallen to an all-time low.
According to Bitbo data, miners earned $827.56 million in August, down 10.5% from $927.35 million in July. This is the lowest monthly income since September 2023, when they earned $727.79 million.
The situation is even more striking when compared to the beginning of the year. August’s gains are still 57% lower than the $1.93 billion in March 2024, when Bitcoin hit its all-time high of $73,500. This sharp decline is likely due to the additional pressure on miners caused by the recent Bitcoin halving event.
The current downtrend is similar to the situation in September 2023, when miners earned $727.79 million and Bitcoin was trading at around $25,000. Bitcoin is currently priced at $58,472 and has a market cap of $1.15 trillion.
Miners are struggling with the surge in hardships
In August, profits dropped significantly due to lower trading volume and increased mining difficulty. The difficulty level reached an all-time high of 89.47 trillion in August, up from 86.87 trillion in July. As the difficulty increased and mining became less profitable, some miners began to focus on AI projects.
Additionally, the amount of Bitcoin mined decreased from around 14,725 BTC in July to 13,843 BTC in August. This decrease came after the Bitcoin halving in April, which reduced the block reward by 50% from 6.25 BTC to 3.125 BTC. These factors combined are putting additional pressure on Bitcoin miners.
Bitcoin price is under enormous pressure
Meanwhile, prominent crypto analyst Ali Martinez reported that miners sold 2,655 BTC over the weekend, worth about $154 million. This massive selloff suggests that the Bitcoin price could fall further as new coins enter the market and demand dwindles.
According to Coinpedia news, Bitcoin is struggling to stay above the $58,000 mark. The market may soon test the $56,000 support level, and if this level fails to hold, Bitcoin may fall further to the $52,000 support zone.
Adding to the concerns, stablecoin exchange inflows are at near-record lows, indicating investors are hesitant to re-enter the market, which could potentially lead to further price declines before confidence is restored.