The most important metrics in the chain, As Bitcoin (BTC) mining revenues have returned to pre-halving levelsaccording to recent research.
Data from the analytics provider Glass knot they suggest that Bitcoin mining revenue has now returned to where block rewards were twice what they are now.
When the halving occurred in mid-May, BTC was priced at $ 9,000. By November 18, it had doubled to $ 18,000. This suggests a correlation as miners must sell enough assets to meet their expenses while their business remains profitable.. Higher prices mean higher profits.
#Bitcoin Miners’ income is back at pre-halving levels.
Graphic: https://t.co/Ao9DodRwqi pic.twitter.com/PwUHPaKz8L
– Glass node (@glassnode) 18th November 2020
Blockchain.comThe results, which track the total value of coin-based block rewards and transaction fees paid to miners, confirmed the results.
The daily sales number, which includes block rewards and transaction fees, As of November 18, it was $ 21.2 million, its highest level in a year. The previous peak was on May 6, when it hit $ 20.6 million. After the halving event that reduced the block rewards from 12.5 BTC to 6.25 BTC, Sales dropped to just over $ 7 million a day.
Mining revenues were earlier declining on March 18 this year following the cryptocurrency market crash triggered by the pandemic. This wiped out 45% of the Bitcoin price in less than a week. When mining revenues drop sharply, overfunded miners can begin to capitulate due to adverse market conditions.
It seems just the opposite is happeningas prices near their all time high.
Another factor that indicates the network is healthy and the miners happy is the hash rate, which is now only 10% of its highest level.
After the end of the rainy season in China, where most of the bitcoin mining takes place, The rigs were shut down in preparation for the move as the cheap hydropower had dried up. This resulted in a seasonal decrease in hash rate from 37% to less than 98 exahashes per second.
Since then, The hash rate, which many believe correlates with price, has rebounded to 143.4 EH / sThat’s not far from its high of 157.6 EH / s in mid-October, according to Bitinfocharts.com.
Current mining revenue and hash rate recovery a good sign for the continuation of the bull marketThis could push Bitcoin prices to a new all-time high before the end of the year.