Category: Bitcoin

Bitcoin miners have been generating much more in revenue over the recent months, according to data from Glassnode – an on-chain crypto analytics platform. The revenue usually consists of the cryptocurrency block subsidy and transaction fees. The increase in miners’ revenue follows the recent growth of Bitcoin in market value. 

BTC Miners Average $50 Million Daily

As Rafael Schultze-Kraft, the CTO of Glassnode recently shared on Twitter, Bitcoin miners have been averaging $50 million in daily revenue for the past 30 days. The current record represents over 300 percent increase compared to the record a year ago, which was around $12 million daily revenue.

Overall, Bitcoin miners netted about $1.5 billion mining revenue in March alone, most of which came from the block subsidies paid to them.

BTC miners’ revenue has increased over the past few months. As of January, miners generated about $1.1 billion in revenue, which also represented about a 62 percent increase from the revenue in December. 

Note that, Bitcoin block reward was recently halved to 6.25 BTC on May 11, which is 50 percent less than rewards in the months before. Yet, miners are still able to generate this much in revenue, mostly because of the increase in the price of Bitcoin.

Since Bitcoin’s third halving, the value of the cryptocurrency has increased by over 550 percent.

Most Miners are HODLing

Despite the massive increase in miners’ revenue, on-chain data from Glassnode also confirmed that they are HODLing most of their BTC rewards. For the past weeks, the miner net position change has remained positive, as Crypto News Australia reported on Wednesday. This means that BTC miners have been accumulating new Bitcoin for the stated period. This is quite bullish in the long-term, as it creates scarcity for BTC.

Bitcoin miners are still not selling new BTC, according to on-chain data from Glassnode, a crypto analytics company. Since the past few days, the miner net position change has remained positive, showing that miners are HOLDing their coins, despite the fact that more mining machines recently went online on the BTC network. 

Bitcoin Hash rate ATH

About a week ago, Crypto News Australia reported an increase in Bitcoin mining hash rate at 165.992 million Tera Hash per second (TH/s), which is the highest point. This simply means that more mining machines are currently active on the Bitcoin network to mine the cryptocurrency. Most of these miners, however, prefer HODLing their rewards than depositing to exchanges for selling, as seen in the BTC miner net position change.

There’s also an uptick in BTC miner unspent supply, which covers new Bitcoin that hasn’t been moved from the original mining addresses, confirming that miners are becoming strong hands. 

The increasing price of Bitcoin could be one factor why miners prefer to HODL their rewards at this time. Miners reasonably need to sell some of their Bitcoin profits to cover the expenses incurred during operation, such as electricity bills. By not selling BTC, it seems to convey how confident and bullish they are on the cryptocurrency.

A Bullish Sign for BTC Market?

Noteworthily, miners are the gateway for new Bitcoin to enter the market. As they continue to stack more coins, the cryptocurrency might become more scarce, yet still in high demand. This is quite a healthy and bullish indicator for the Bitcoin market in the long-term, as scarcity often drives up the market value of an asset with huge demand.

Bitcoin is already becoming scarce as many investors are continually moving out their coins from exchange for HODLing. Data from CryptoQuant shows that there is less than 2.3 million BTC in all exchanges.