According to data provided by Glass knot On-chain data provider, the total value paid to miners in USD increased by 275%, totaling $ 40 million paid to miners per day. The gradually increasing profits are almost completely fueled by the major price increase of Bitcoin. The ATH in earnings was hit in April when Bitcoin was trading at $ 60,000.
Miners’ profits always vary depending on the costs of electricity, the maintenance of mining rigs, market fluctuations and other force majeure factors like the Chinese crackdown on cryptocurrencies. While miners’ profits remain extremely high, they also indicate potential incoming selling pressure on the market.
Previously, after mining was banned in some provinces in China, Bitcoin’s hashrate fell sharply by nearly 50%, allowing it to recover after losing more than 50% of its value. Decreased selling pressure from miners can be valued at around $10 million per day.
Comparing the current profits with the halving that took place in 2020, the current incomes of miners are significantly higher with a 275% increase before the halving and a 630% increase after the halving. After a block reward cutting, Bitcoin’s price jumped significantly, compensating miners’ losses.
Various Bitcoin market analysts note that halving events are very well received by market participants and generally require miners to hold onto their rewards in order to sell them for a better price. Each halving event previously led to an increase in the value of Bitcoin.
