Key Points
- Bitcoin miners are facing selling pressure due to declining revenues post-halving.
- US Spot Bitcoin ETFs experienced a significant net inflow of $11.78 billion.
Bitcoin Miners Under Pressure
Bitcoin [BTC] has been hovering around the $62,000 price level for a while. However, the future might not be so steady for the leading cryptocurrency.
Recent data indicates that the average Bitcoin miner is experiencing difficulty following the halving. There has been a significant decrease in revenue since then, leading to the toughest conditions miners have faced since the COVID-19 crash in March 2020.
Impact on Network and Wall Street
This strain is reflected in the falling hashrate, triggering the network’s fourth negative difficulty adjustment of the year. The latest adjustment, at -5.6%, is the most significant negative change since November 2022, after the FTX collapse. If conditions worsen, miners might have to sell their BTC holdings to stay profitable.
Despite the grim situation for BTC due to the miners’ state, Bitcoin’s status on Wall Street appears more promising. US Spot Bitcoin ETFs saw a total net inflow of $11.78 billion, with a daily net inflow of $12 million recorded on May 8th.
ETFs Performance
Among these ETFs, Bitwise’s BITB was the only one with a net inflow, while both Blackrock’s IBIT and Grayscale’s GBTC experienced no net flow during the same period. Furthermore, the Grayscale Bitcoin Trust ETF (GBTC) reported zero net flow on May 8th and a total net outflow of $17.5 billion.
In Asia, HK Spot Bitcoin ETFs have attracted a total net inflow of $273.6 million since their launch on April 30th, with a daily net inflow of $6.3 million reported on May 8th. Conversely, HK Spot Ether ETFs recorded a total net inflow of $50.6 million since their launch on April 30th, but they experienced a daily net outflow of $1.9 million on May 8th.
At the time of writing, BTC was trading at $62,945.16 and its price had increased by 3.40% in the last 24 hours. The MVRV ratio for BTC had grown due to the surge in price. This suggests that most addresses holding BTC had become profitable. As profitability for addresses increases, so does the incentive for holders to sell and take profits.
