Bitcoin miners faced growing pressure in March as
profitability declined sharply amid falling prices and transaction fees. But this
could change in April as the cryptocurrency’s price rebounded, hitting $85,000
and outpacing the broader U.S. stock market.
Mining profitability fell 7.4% in March,
driven by an 11.2% drop in the average BTC price and a 9.1% slide in
transaction fees, Coindesk reported, citing investment bank Jefferies.
Challenging Month for Bitcoin Miners
These two metrics, which directly impact miner
revenue, signaled a challenging month for operators despite a rise in network
contribution from U.S.-listed miners.
Jefferies reported that public mining companies in the
U.S. mined a total of 3,534 BTC in March, up from 3,002 in February. Their
share of the total Bitcoin network also rose to 24.8% from 23.6% the previous
month.
Marathon Digital Holdings led production with 829 BTC
mined, followed by CleanSpark with 706 BTC. Despite the increase in production,
the financial return diminished due to weaker pricing and fee structures across
the network.
Jefferies noted a different picture emerging in April.
While mining profitability data is not yet available, Bitcoin has shown
surprising resilience. The cryptocurrency briefly rallied to $85,000 on Monday,
fueled in part by easing trade concerns.
According to CoinMarketCap data, Bitcoin traded at $84,702 at the time of reporting, up 7% over the past week. The 24-hour trading
volume surged 37% to more than 35 billion, largely reflecting post-weekend
activity. Market capitalization increased to $1.68 trillion.
Key Levels to Watch
The immediate price resistance level is currently at
$87,800. On-chain data suggests significant liquidity has built up at this
level, where many traders have placed stop or limit orders.
A move beyond this threshold with high volume could
trigger a bullish breakout and push BTC into new territory. The next resistance
level is at $90K. Alternatively, if
bears defend the level aggressively, the market could see a rejection and
short-term correction.
For now, traders are watching closely as Bitcoin
hovers just below this inflection point. Despite the headwinds faced in March,
the early April performance may provide some relief for miners, especially if
the current momentum sustains. But with mining rewards halving on the horizon,
the profitability calculus could change rapidly once again.
This article was written by Jared Kirui at www.financemagnates.com.
Source link
