bittcoThe month of May was a nightmare for the cryptocurrency market, with a series of events leading to significant sell-offs in Bitcoin and altcoins. The market capitalization plummeted to $1.2 trillion from a high of $2.5 trillion, and Bitcoin miners were not immune as they recorded a 15% loss in earnings.
Bitcoin miners made at least $1.45 billion in May, according to reported data. This marks a 15.01 percent decrease from April’s $1.7 billion in profit. The reduction in mining revenue is unsurprising given Bitcoin’s price reduction of almost 50% from its All-Time-High (ATH).
When looking at Bitcoin’s daily mining earnings over the last three months, the highest daily value was $77 million on April 15th. On May 29th, the lowest day return of $26 million was recorded.
Last month, Bitcoin’s energy usage disputes and mining limit produced a market fall, causing a lot of troubles for the flagship crypto. It all started with detractors pointing out the digital asset’s high energy use. Elon Musk, the CEO of Tesla, expressed concern about Bitcoin’s carbon impact in the globe and declared that his electric car company would no longer accept Bitcoin as payment due to environmental concerns. This caused the most popular cryptocurrency to plummet from its all-time high to below $50,000. Following this decision, reports began to circulate that his firm was planning to sell its Bitcoin assets, further instilling fear and skepticism in the market. Musk, on the other hand, has denied reports that Tesla may sell its Bitcoin.
The market’s situation deteriorated further when word broke that China had banned Bitcoin mining and trading. The Asian country is responsible for a sizable portion of global Bitcoin mining activity. On May 19th, the price of bitcoin fell to as low as $30,000 as a result of this.
In a bad market, investors have a tendency to panic-sell their digital assets. Following the China news, short-term investors liquidated their BTC holdings at a loss, according to on-chain analytics. A reduction in Bitcoin’s price also means a decline in interest in trading the commodity, resulting in fewer transactions to confirm and, as a result, a decline in Bitcoin mining revenues.
Bitcoin is now trading at $38,500, up 1.45% in the last 24 hours.