RIOT Platforms, Marathon Digital and other major Bitcoin companies, have encountered a downturn in production for the year 2024, according to CryptoQuant, an analytics firm.
This downturn happens to coincide with the approach of Bitcoin’s fourth halving event, as the industry grapples with heightened competition and diminishing transaction fees, the analytics firm said.
Report from the recent CryptoQuant’s research analysis, underscores the challenges faced by major crypto mining entities like Core Scientific, Bitfarms, and Marathon Digital, all of which have experienced a downturn in Bitcoin production this year.
Consequently, some miners are said to have increased selling activities to lessen financial strains in preparation of the halving event. Also, CryptoQuant notices a rush in miner daily selling to over-the-counter desks, reaching 1,600 BTC by late March, marking the highest volume of selling since August 2023.
However, this decline is attributed to certain factors that have in one way contributed to the downturn, they include reduced transaction fees within the Bitcoin network, increased network hash rate, and operational disruptions. Furthermore, amidst this industry-wide downturn, CleanSpark emerges as an outlier, demonstrating growth in Bitcoin production, according to CryptoQuant.
Consequently, some miners are said to have increased selling activities to lessen financial strains in preparation of the halving event. Also, CryptoQuant notices a rush in miner daily selling to over-the-counter desks, reaching 1,600 BTC by late March, marking the highest volume of selling since August 2023.
Amidst this development, the fierce competition within the sector remains with Bitcoin’s network hash rate steadily shooting.
CryptoQuant’s data stressed the need for additional resources to sustain daily production levels, indicating a “record-high competition for Bitcoin block rewards,” with hash rate levels soaring since the previous halving in 2020.
A shift in landscape compared to last year is said to be observed by experts following the decline faced by industry, with current cryptocurrency prices providing a degree of relief to miners.
As a means to reduce the risk of widespread bankruptcies, Hub 8 CEO, Asher Genoot points that the market dynamics differ from those witnessed in 2022, suggesting that the current environment is more supportive of miners.
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