Decreasing Mining Fees Affects Weakening Bitcoin Prices, More Than 80,000 Coins Sell

BONSERNEWS.com – In the last 10 months the current Bitcoin mining fee has fallen quite a bit to its lowest point.

The declining number of miners and some others reducing their activities amidst the crypto market bearish led to a decline in Bitcoin mining.

Over 80,000 coins seen selling used to survive and operate.

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Based on the Cointelegraph report, one of the reasons for the decrease in the cost of mining Bitcoin is the use of more efficient hardware.

JP Morgan strategist Nikolaos Panigirtzoglou said Bitcoin production costs had fallen from $24,000 to around $13,000 in one month.

“Lower Bitcoin production costs have the potential to reduce miner selling pressure and increase profitability.”

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“However, strategists are still bearish, suggesting that falling production costs might be considered negative for the outlook for Bitcoin price going forward,” wrote Bloomberg, quoted via Blockchain Media.

Not only that, a number of analysts consider this drop in fees to be the lower bound of the price range of major cryptocurrencies in a bearish crypto market.

Analysts also predict that Bitcoin price could potentially fall another $13,000 again, following the 80 percent pullback seen in the previous two bear markets.

Meanwhile, currently the decline in Bitcoin prices has been in the range of 70 percent.

Most miners are no longer using old mining equipment to offset rising energy prices,

While mining profitability data provider AsicMinerValue, the Bitmain Antminer E9 rig is claimed to be one of the most efficient units and is one of the reasons for reducing mining costs.

According to the Bitinforcharts report, miner profitability is at its lowest point since October 2020, at US$0.095 per day per TH/s.

However, the reduction in production costs is expected to halt the decline in miner profitability, turning it into increasing profits in the coming months.

Bitcoin mining productivity is expected to continue to increase in order to increase the selling price of bitcoin.