Bitcoin Mining Growth Slows as Small Miners Struggle

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Bitget Academy2025/02/21 06:57

By:Bitget Academy

Bitcoin mining growth has slowed due to tough market conditions, particularly for smaller operators. In January 2025, the total revenue from mining stayed stable at $1.4 billion, with public mining companies contributing 30% of the network’s total hashrate. While major mining firms like Marathon Digital, CleanSpark, and Riot Platforms continue expanding, smaller miners are struggling to keep up. The recent Bitcoin halving, which reduced mining rewards by half, has further squeezed profit margins.

Larger companies are strengthening their market position, while smaller players are either shutting down or seeking alternative revenue streams, such as providing computing power to AI and high-performance computing (HPC) firms. Imports of mining hardware into the U.S. have also slowed, contributing to the leveling off of hashrate growth. TheMinerMag expects another drop in mining difficulty in February as more small-scale miners exit due to declining profitability.

Source: CoinDesk

Futures Market Updates

BTC and ETH futures both saw an increase in open interest, with BTC rising by 3.45% and ETH by 2.44%, indicating growing market engagement. However, trading volumes declined for both, with BTC futures dropping 4.42% and ETH futures falling more sharply by 10.06%. BTC futures had significantly higher short liquidations ($43.93M) than long liquidations ($5.12M), whereas ETH futures showed a more balanced liquidation pattern ($11.29M long vs. $12.45M short). The long/short ratio for BTC was nearly even (50.08%/49.92%), while ETH had a slight short bias (49.18% long / 50.82% short). Notably, ETH futures had a higher funding rate (0.0040%) than BTC (0.0027%), suggesting stronger demand for leveraged long positions in ETH.

BTC Futures Updates

Total BTC Open Interest: $64.51B (+3.45%)

BTC Volume (24H): $61.72B (-4.42%)

BTC Liquidations (24H): $5.12M (Long)/$43.93M (Short)

Long/Short Ratio: 50.08%/49.92%

Funding Rate: 0.0027%

ETH Futures Updates

Total ETH Open Interest: $25.04B (+2.44%)

ETH Volume (24H): $23.17B (-10.06%)

ETH Liquidations (24H): $11.29M (Long)/$12.45M (Short)

Long/Short Ratio: 49.18%/50.82%

Funding Rate: 0.0040%

Top 3 OI Surges

AVL: $5.04M (+4989.04%)

JTO: $90.12M (+169.11%)

SWEAT: $8.51M (+147.21%)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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