Rising energy costs and falling bitcoin prices have negatively impacted mining economics. Coupled with a higher cost of capital, lower miner revenues have led miners to sell accumulated balances to fund their operations. Miners are typically long bitcoin as a result of the mining process, whereby the reward for confirming transaction blocks includes newly minted bitcoins, the “block subsidy,” and transaction fees. Together, these are known as the “block reward.”
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Bitcoin was explicitly designed for today’s market environment, and it delivered strong performance in the first quarter of 2023. Bitcoin ended the quarter above $28,000 and up 72% YTD, making it bitcoin’s best performing quarter since 1Q21.
We take a look at the first quarter of 2023 and the news that shaped it as well as important events in the future.
Bitcoin ended 2022 down over 60%, which ranks as bitcoin’s second worst performing calendar year since the asset began trading in 2009.
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