Bitcoin Miners Struggle as Revenues Decline for Third Straight Month

In the ever-volatile world of cryptocurrency, Bitcoin miners are facing a challenging period as their revenues have declined for the third consecutive month. Despite a moderate increase in Bitcoin prices, the daily mining revenue and gross profit have continued to drop, marking a significant downturn in the industry.According to a report by JPMorgan Chase & Co., the daily block reward gross profit for Bitcoin miners fell by 6% in September, reaching the lowest point in recent records. This decline is particularly noteworthy given that the average Bitcoin prices have seen a moderate rise during this period.The drop in miner revenues is largely attributed to the increasing network difficulty and a surging hash rate. As more miners join the network and the difficulty of solving the complex mathematical equations required to mine Bitcoin increases, the earnings per unit of mining power (measured in Exahashes per second, or EH/s) have decreased. Miners are now earning an average of $42,100 per EH/s, down 6% from the previous month.This trend is not isolated to the mining sector; it reflects broader investor sentiment in the cryptocurrency market. Global crypto investment products experienced a significant outflow of $147 million last week, ending a three-week streak of net inflows totaling nearly $2 billion. Bitcoin-based funds were particularly affected, with net outflows of $159 million. This cautious approach by investors is partly driven by changing economic conditions and geopolitical tensions.However, there are some positive indicators on the horizon. The reduction in Bitcoin held on centralized exchanges to levels not seen since November 2018 suggests that investors are moving their holdings to long-term storage solutions, potentially indicating a bullish outlook over the long term. This trend could reduce immediate selling pressure and lead to increased volatility and potentially bullish price movements if demand rises.Additionally, the expectation of monetary policy easing, with a 97% probability of a 25 basis points rate cut by the Federal Reserve in November, could boost risk-on sentiment and positively impact cryptocurrencies. As investors await these potential catalysts, the crypto market remains in a state of flux, reflecting the ongoing interplay between economic indicators, investor confidence, and technological advancements in the blockchain space.