Bitcoin mining revenue hits yearly high after return to pre-halving levels

Published on by Cointele | Published on

Mining revenues have returned to pre-halving levels, according to recent research.

Data from analytics provider Glassnode suggests that revenue from Bitcoin mining is now back at the same levels it was as when block rewards were double what they are now., which tracks the total value of coin-base block rewards and transaction fees paid to miners confirmed the findings.

The daily revenue figure, which includes block rewards and transaction fees, was $21.2 million for Nov. 18, its highest for a year.

Following the halving event, which dropped block rewards from 12.5 BTC to 6.25 BTC, revenue plummeted to just over $7 million per day.

Mining revenue saw an earlier slump on March 18 this year following the pandemic-induced crypto market crash, which wiped 45% off the price of Bitcoin in less than a week.

When mining revenue falls steeply, overleveraged miners can begin capitulating due to unfavorable market conditions.

Another factor indicating that the network is healthy and miners are happy is the hash rate, which is now just 10% away from its highestever level.

Following the end of the rainy season in China, where the majority of Bitcoin mining takes place, rigs were powered down in preparation for relocation as cheap hydroelectric power dried up.

The current mining revenue figures and hash-rate recovery bodes well for the continuation of the bull market, which may just take Bitcoin prices to a new all-time high before the end of the year.