According to the data provided by glass On-chain data provider, the total value paid to miners in US dollars has increased by 275%, with a total of $40 million being paid to miners daily. The gradually increasing profits are fueled by the significant increase in the price of Bitcoin. ATH returns slumped in April when Bitcoin was trading at $60,000.
Miners’ earnings still vary based on electricity costs, mining rig service, market fluctuations, and other force majeure factors such as the Chinese crackdown on cryptocurrencies. While miners’ earnings remain very high, it also indicates potential incoming selling pressure in the market.
Previously, after mining was banned in some provinces in China, the Bitcoin hash rate dropped sharply by about 50%, which allowed it to recover after losing more than 50% of its value. Low selling pressure from miners can be estimated at around $10 million per day.
Comparing current earnings to the halving that occurred in 2020, current mining revenue is much higher with a 275% increase before the halving and a 630% increase after the halving. After the block reward was cut, the price of Bitcoin jumped dramatically, to compensate for the losses of the miners.
Many Bitcoin market analysts note that halving events are very welcome by market participants and usually cause miners to keep their rewards in order to sell them at a better price. Each halving event previously led to an increase in the value of Bitcoin.
