Despite the recent increase in mining difficulty, Bitcoin miners still see a 31% uptick in revenue as hashrate recovery continues.
Bitcoin Miners Enjoy 31% Surge In Revenue
Over the past couple of months, BTC’s global mining hashrate collapsed as China ramped up its crackdowns on BTC mining.
China was a host to many big mining hubs like the hydropower province of Sichuan. Cheap and accessible power meant the nation attracted mining companies from around the world.
After a reiteration of the nation’s Bitcoin ban, China began cracking down on these mining farms. As most of the global BTC hashrate resided in the country, shutting down of operations lead to a significant crash.
Miners had to leave the nation and set up their operations elsewhere. Migration locations for these miners included the likes of US, Kazakhstan, and Russia.
Now that miners have been relocating and restarting operations, the Bitcoin hashrate has started to recover. According to a report from Arcane Research, 31 July noticed a 6% increase in the mining difficulty, the first in nearly two months.
Data for various parameters related to BTC mining | Source: Arcane Research
Due to the increasing hashrate, miners have started raking in more revenue. Bitcoin miners generated $971 million in revenue in July. Compared to the $893 million in June, this value is about 16% more.
And this is despite a decrease in miner fees. This decrease in fees means there isn’t enough demand for transactions compared to the mining supply.
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The 7-day moving average of the total transaction fees has hit the lowest value since April 2020. While the block discovery rate has gone up by 72% since 28 June.
Compared to the top in mid-May, however, the Bitcoin mining difficulty right now is still 48% less. In 10 days, it’s expected to go up again.
At the time of writing, Bitcoin’s price is around $38k, up 1.5% in the last 7 days. Compared to last month, the value of the cryptocurrency is almost 8% more.
Here is a chart that shows the trend in BTC’s price over the last one year:
BTC's price seems to be moving back down after peaking at $42k | Source: BTCUSD on TradingView
Over the past few days, BTC has enjoyed an upwards trajectory where the coin broke $40k and topped at $42k. However, now the crypto seems to be catching a downwards trend again as its value is down 3.5% in the last 24 hours.
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It’s unclear where the coin might head next. It could become range bound below the $40k level. Or perhaps it might continue moving down for now.
Featured image from Pexels.com, chart from TradingView.com