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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As the summer came to an end, Bitcoin retreated from its rally earlier in August and ultimately sold off to end the month lower, falling by 14% to $20,229 in what continued to be a challenging macroeconomic environment.
Bitcoin recovered 26% in July to $23,907, delivering its first positive month of performance since
March.
May was another difficult month for digital assets, with bitcoin ending the month 18% lower.
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