Is the Bitcoin Miner Capitulation Over?

Bitcoin mining revenue is nearing its annual average, suggesting that miners might soon see the end of their recent struggles.

Analyst James Van Straten recently shared insights on Bitcoin miners’ current situation. One way to assess miners’ health is through hashrate, which measures the computing power on the Bitcoin network.

Total Miner revenue is roughly $35M, and the 365(SMA) is roughly $40M.

This is another way to show the miner capitulation is almost over, once it reclaims the 365SMA and #Bitcoin can continue to trend higher. pic.twitter.com/slTiLoz670

— James Van Straten (@jvs_btc) July 22, 2024

However, Van Straten focused on daily revenue, which includes block subsidies (BTC rewards for solving blocks) and transaction fees (payments from users for processing transactions).

The chart reveals that Bitcoin miner revenue rose significantly with the price surge starting in October last year, reaching a peak in April this year. This increase was driven by the fixed BTC block subsidies becoming more valuable as Bitcoin’s price rose, and higher transaction fees due to increased network activity.

The introduction of Runes technology, allowing the minting of fungible tokens, further boosted transaction activity and miner revenue. However, after hitting an all-time high, miner revenue sharply declined, falling below the 365-day simple moving average (SMA), primarily due to the fourth Halving event, which halved the block rewards.

Recently, miner revenue has rebounded to $35 million, close to the $40 million annual average, indicating that the period of capitulation might be ending. If revenue continues to rise and surpasses the 365-day SMA, it could signal further positive trends for Bitcoin.