RATE Group | Miner Revenues Crash, But This Has Always Marked Bitcoin Price Bottoms
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Miner Revenues Crash, But This Has Always Marked Bitcoin Price Bottoms

21 May Miner Revenues Crash, But This Has Always Marked Bitcoin Price Bottoms

Posted at 10:52h in Bitcoin News by

The revenue of Bitcoin (BTC) miners dropped to early 2019 levels for the second time in 2020. Every time it declined to a multi-year low, it marked the start of a bullish trend for BTC.

The last time the daily revenue of Bitcoin miners hovered at around $7 million was on March 13, 2020. At the time, the price of BTC dropped to as low as $3,600 on BitMEX following a cascade of more than a billion dollars in long contracts.

After mining revenue plunged on March 13, the price of Bitcoin rose from $3,600 to over $10,000 with a 177% gain over the next month and a half.

Bitcoin miners revenue drop to early 2019 levels

Bitcoin miners revenue drop to early 2019 levels. Source: Blockchain

Bitcoin may see a similar trend in the coming months

When Bitcoin mining revenue falls steeply, it indicates that over-leveraged miners are capitulating due to unfavorable market conditions.

From March 12 to March 13, the mining revenue declined as a result of a 50% drop in the price of Bitcoin in a span of 24 hours. This time, the drop-off is seemingly caused…

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