Bitcoin: Earning dropped by 15% as miners lose $1.45 billion in May
June 6, 2021
Bitcoin: Earning dropped by 15% as miners lose $1.45 billion in May
Bitcoin – The month of May did not pass unnoticed for the crypto industry, it was characterized by ups and downs, then a quick succession of events that led to the sell-off of the flagship digital currency.
Consequently, the market Capitalization dropped by $1.2 trillion from a peak of $2.5 trillion, the sequel to this bitcoin miners were dealt a huge blow having witnessed a 15% drop in earnings.
According to data from BTC PEERS, miners earned at least $1.45 billion in May. This value represents a 15% drop against the April earnings of $1.7 billion. The drop in mining revenue is expected considering bitcoin price correction by over 50% from its all-time high.
Taking into account the BTC mining revenue over the last three months, the highest daily value was deducted on April 15th, when it hits $77 million, while the lowest outcome in a day was recorded on May 29th at $26 million.
Bitcoin energy consumption and mining ban
A lot of problems ensued last month on bitcoin energy usage and mining ban.
Critics came so hard on digital assets’ energy consumption rate. Tesla’s CEO Elon Musk shared concerns about bitcoin carbon footprints to the world and announced that the electric car manufacturing company under his own will discontinue the acceptance of cryptocurrency for purchases given environmental concern.
This statement hits the flagship crypto and leads to its price collapse from its all-time high to below $50k. There was a rumor that the firm may dump its bitcoin holdings, this spreads more fear and doubt in the market. Musk has cleared the air by refuting claims that Tesla will sell it bitcoin.
Sequel to this, the market was struck by another news of China banning bitcoin mining and trading in its market, China accounts for a significant amount of bitcoin mining in the world, on this note bitcoin plummets further to as low as $30,000 on May 19th.
In a situation like this, investors are expected to panic and sell off their bitcoin holdings. Following the China news short-term investors sold their bitcoin at a loss, the drop in price translates to a corresponding lack of interest in trading the asset.
Raphael Orji is a freelance writer, professional blogger and a content marketing consultant. I work with small businesses, startups and entrepreneurs in building their brand image with high quality blogging and content marketing strategy.
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