Bitcoin’s price has been steadily rising since January 23, leading to a surge in miner revenues. On March 11, daily Bitcoin mining rewards reached a record high of $78.89 million, surpassing the previous high of $74.4 million set in October 2021. Miner revenues primarily come from block rewards and transaction fees. Miners currently receive 6.25 BTC for each successful block they create. Bitcoin reached a new all-time high of $72,953 on March 12 before retracing to $69,655. However, it is still up 246% in the last 12 months.
The mining industry has also experienced significant revenue growth, with a 212% increase in US dollars. Bitcoin mining revenue rose from $25.23 million on March 17, 2023, to approximately $78.89 million on March 11. The Bitcoin hash rate, which measures the computing power securing the network, also reached an all-time high of 676 exahashes per second on February 2. This indicates that more miners are joining the network.
The increase in miner revenue and hash rate can be attributed to the uptick in on-chain activity. The number of transactions on the Bitcoin network reached an all-time high of 974.7 million, a 20% increase over the last 12 months.
While the rally in Bitcoin’s price has been attributed to increased capital inflow into US spot Bitcoin ETFs, another important event to watch is the upcoming supply halving. Bitcoin halving occurs every four years and reduces miner rewards by 50%. The next halving is expected in April, which will decrease miner rewards from 6.25 BTC to 3.125 BTC.
In preparation for the halving, miners have been using profits from the recent price rally to expand their operations and buy more equipment. This will help them remain profitable despite reduced earnings. Thirteen major Bitcoin mining firms have ordered over $1 billion worth of mining rigs in the last month. Bitfarms, for example, has acquired an additional 10 EH/s Bitcoin miners for $143 million.
On-chain data shows that Bitcoin miners are taking profits from the price rally. This could be due to the upcoming halving, increased mining difficulty, and record-high hash rate. Miner selling is common during bull markets, especially when there is a significant increase in on-chain transactions.
BTC balances in miner wallets have dropped to a three-year low of 1.8 million BTC, confirming the offloading trend. As Bitcoin’s price continues to rise, miner revenues are growing, leading to more profit bookings among market participants. It is important for readers to conduct their own research and make informed decisions when it comes to investments and trading.