Bitcoin’s rally to $72K took miner revenues to record highs
Bitcoin’s ( BTC ) 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 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.comMiner 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 on Feb. 2.
Bitcoin: Total hash rate. Source: blockchain.comThis 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 exahashes per second.
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.comWhile the rally in BTC’s price has been attributed to increased capital inflow into the U.S. spot Bitcoin ETFs , the upcoming supply halving event is another important event to watch.
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 one is Bitfarms which has 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 a 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 ChangeMore 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: GlassnodeTherefore, 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.
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.
You may also like
Trump and Wall Street: How long will the love affair last?
Share link:In this post: Wall Street loved Trump’s win at first—stocks jumped, Bitcoin soared, and borrowing costs hit rock bottom, but some sectors started cracking fast. Tax cuts and deregulation made financial and energy stocks shoot up, but tariffs and plans to deport workers freaked out economists and markets. Tariffs mean higher prices for Americans, and even Walmart’s warning it’ll have to raise prices if Trump pushes through with his trade war.
The clash of Bitcoin and benchmark stock indexes
Share link:In this post: The S&P 500 is up 25% this year, with financial and cyclical stocks leading, boosted by optimism around a Trump administration and steady economic growth. Bitcoin has surged 40% this month, nearing $100,000, driven by aggressive trading, retail investor enthusiasm, and headlines hinting at government support. MicroStrategy’s stock hit a $100 billion market cap, tripling its Bitcoin holdings’ value, but its wild 32% drop from intraday highs shows cracks in the frenzy.
Ethereum price rises with market recovery
Google AI Gemini Predicts $4500 Price Target For ETH in December, This Cat Meme Coin is Already Pumping