Fun

Bitcoin’s rally to $72K took miner revenues to record highs

News Feed - 2024-03-13 03:03:19

Nancy Lubale5 hours agoBitcoin’s rally to $72K took miner revenues to record highsMiners saw revenues climb to roughly $78.89 million on March 11, the same day the BTC price broke new all-time highs.1124 Total views12 Total sharesListen to article 0:00Market AnalysisOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin’s price has been on an “up only” trend since Jan. 23, resulting in an increase in miner revenues, which reached a record high earlier this week.


Data from Blockchain.com shows that daily Bitcoin (BTC) mining rewards spiked to $78.89 million on March 11 for the first time in history, surpassing the previous high of $74.4 million set in October 2021.Bitcoin mining revenue annual chart. Source: Blockchain.com


Miner revenues primarily come from rewards for creating new blocks and confirming transactions on the Bitcoin blockchain. Miners currently receive 6.25 BTC for every successful block they create in addition to transaction fees.


Bitcoin rose to a new all-time high of $72,953 on March 12. It has since retraced back to $69,655, but it is still up 246% in the last 12 months, according to data from CoinMarketCap.


Similarly, the mining industry has witnessed 212% revenue growth in U.S. dollars, as shown in the chart above.


Bitcoin mining revenue climbed from $25.23 million on March 17, 2023, to roughly $78.89 million on March 11.


More data from Blockchain.com reveals that the Bitcoin hash rate has also increased over the last year to reach an all-time high of 676 exahashes per second (EH/s) on Feb. 2.Bitcoin: Total hash rate. Source: Blockchain.com


This means that more miners are joining to secure the pioneer blockchain network. At the time of publishing, the Bitcoin hash rate stood at around 642.9 EH/s.Transaction volume on Bitcoin network reaches an all-time high


The increase in Bitcoin miner revenue and hash rate can be explained by the uptick in on-chain activity.


This week, the number of transactions on the Bitcoin network also reached an all-time high of 974.7 million transactions. This was a 20% increase over the last 12 months.Total number of transactions on the Bitcoin network. Source: Blockchain.com


While the rally in BTC’s price has been attributed to increased capital inflow into the United States spot Bitcoin exchange-traded funds, the upcoming supply halving event is another important event to watch.


The Bitcoin halving occurs once every four years and refers to a situation where miner rewards are reduced by 50%. The next halving is expected in April, just under 35 days away, and will reduce miner rewards from 6.25 BTC to 3.125 BTC.


Related:Bitcoin has 6 months until ETF ‘liquidity crisis’ — New analysis


In preparation for this, miners have been using profits from the latest BTC rally to buy more equipment to double their operations in order to remain afloat after the reduced earnings, according to a Bloomberg report.


More data from TheMinerMag reveals that 13 major Bitcoin mining firms have ordered over $1 billion worth of mining rigs over the last month. The latest is Bitfarms, which acquired an additional 10 EH/s Bitcoin miners for $143 million.Miners offloading BTC in preparation for the halving


On-chain data from Glassnode shows evidence that Bitcoin miners are taking profits on the latest rally in BTC price. The factors influencing the offloading could be preparation for reduced earnings after the halving, increased mining difficulty and the hash rate reaching record highs.


These levels of miner selling are normal in a bull market, as shown in the chart below. This is especially true for the huge increase in on-chain transactions, as mentioned above. Miners are selling heavily.Bitcoin: Miner Net Position Change. Source: Glassnod


More data from Glassnode shows BTC balances in miner wallets have dropped to a three-year low of 1.8 million BTC, validating the offloading.BTC balance in miner wallets. Source: Glassnode


Therefore, as Bitcoin’s price increases, miner revenues are growing, and more profit bookings are occurring among these market participants.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Mining# Bitcoin Price# Bitcoin Analysis# Bitcoin Mining# Halving# Bitcoin HalvingAdd reactionAdd reaction

News Feed

PODCAST: Ikigai’s Travis Kling on Why Bitcoin Is a ‘Baby X-Man’
“Bitcoin is unequivocally a macro asset,” said Travis Kling, the former hedge funder and now founder and CIO of Ikigai Asset Management. “It is a fledgling macro asset,” Kli
Report: Withdrawal Limits for Egyptian Travelers Lowered as Banks Seek to Conserve Scarce Forex
Report: Withdrawal Limits for Egyptian Travelers Lowered as Banks Seek to Conserve Scarce Forex According to a report, some Egyptian banks recently informed clients who plan to tra
'Crypto King' Aiden Pleterski faces fraud, money laundering charges
Derek Andersen2 hours ago"Crypto King" Aiden Pleterski faces fraud, money laundering chargesPleterski and an associate were arrested months after multiple investor complaints and months of police investigation.406 Total
Dogecoin Repeating History? This Setup Led To 150% Gains
Este artículo también está disponible en español. A new technical chart shared by crypto analyst Cas Abbé (@cas_abbe) on X is showing a recurring bullish pattern in Doge
Vittoria Benzine9 hours agoNew York MoMA now has tokenized artworks in its permanent collectionThe museum’s acquisition of two NFTs marked its first on-chain and AI holdings.1303 Total views8 Total sharesListen to arti
Digital Asset Firm Bakkt to Go Public After Completing Merger — BKKT Shares Set to Trade on NYSE Monday
Digital Asset Firm Bakkt to Go Public After Completing Merger — BKKT Shares Set to Trade on NYSE Monday The digital asset company Bakkt Holdings has completed a merger with a fir
US Lawmaker Introduces Bill to Affirm Blockchain Developers and Non-Custodial Services Are Not Money Transmitters
US Lawmaker Introduces Bill to Affirm Blockchain Developers and Non-Custodial Services Are Not Money Transmitters A U.S. lawmaker has introduced the Blockchain Regulatory Certainty
10 Crypto Exchanges File for Registration With Korean Regulators Ahead of Deadline
10 Crypto Exchanges File for Registration With Korean Regulators Ahead of Deadline Cryptocurrency exchanges in South Korea have until midnight on Friday to register with financial
The Number of SHIB Holders Shudders in 3 Days, Shiba Inu Slid 17% in Value Last Month
The Number of SHIB Holders Shudders in 3 Days, Shiba Inu Slid 17% in Value Last Month While most digital currencies have seen gains during the last month, the meme token called shi
EU enacts crypto regulations to combat money laundering
Amaka Nwaokocha1 hour agoEU enacts crypto regulations to combat money launderingThe new legislation would impact crypto-asset service providers, like centralized crypto exchanges under MiCA.1648 Total views1 Total shares
Cryptocurrency Investment Platform HASHFROG Partnered With BITMAIN and ANTPOOL to Enter the KDA Ecosystem
Cryptocurrency Investment Platform HASHFROG Partnered With BITMAIN and ANTPOOL to Enter the KDA Ecosystem press release PRESS RELEASE.In recent years, the cryptocurrency market has
Wu-Tang clan’s Ghostface Killah drops exclusive music as Bitcoin Ordinals
Savannah Fortis13 hours agoWu-Tang clan’s Ghostface Killah drops exclusive music as Bitcoin OrdinalsThe American rapper Ghostface Killah, known for his role in the group Wu-Tang Clan, will launch new music as Bitcoin O