- As compared to September’s lackluster figures, this was a significant milestone.
- BTC rally was followed by a noticeable drop in coins held in miners’ wallets.
Bitcoin [BTC] miners gave a thumbs up to the latest market rally which saw the king coin leaping to its yearly highs of $35,000.
Read BTC’s Price Prediction 2023-24
The jump in market value boosted Bitcoin’s hash price, seen as an important barometer of miners’ profitability. According to Hashrate Index, the hashprice reached above $73 per PetaHashes per day (PH/Day), the highest in two months.
As compared to the September average of $61.71/PH/Day, this was a significant milestone for the mining industry.
Source: Hashrate Index
Hashprice responds to the market rally
Hashprice is a well-known mining metric that quantifies how much a miner can expect to earn from a specific quantity of hashrate. It is positively correlated with changes to Bitcoin’s price, explaining the significant jump in value.
However, apart from Bitcoin’s price, hash price positively responds to transaction fees earned by miners as well. After all, transaction fees form a considerable chunk of miners’ revenues.
As prices rallied, users thronged the Bitcoin network to buy and sell the asset. With more users, transactions increased, and so did the fees received by miners by validating such transactions. Consequently, the share of miner revenue earned through fees also swung upwards.
Source: Glassnode
Miners dump their holdings for gains
Miners use block rewards, inclusive of fees, to offset the costs associated with mining equipment and electricity. Hence, they routinely liquidate their holdings to raise cash.
Generally, when Bitcoin prices are muted, miners switch over to a hoarding mentality and wait for a meaningful increase.
According to on-chain analytics platform CryptoQuant, BTC rally was followed by a noticeable drop in coins held in miners’ wallets. This served as evidence that miners cashed out to reap the benefits of the increased prices.
Source: CryptoQuant
Is your portfolio green? Check out the BTC Profit Calculator
A big development for the mining industry
Coinciding with the spike in profitability, Bitcoin miners had something more to cheer. One of the world’s largest Bitcoin ASIC manufacturers MicroBT unveiled its highly anticipated M60 series at an event in Dubai, as reported by journalist Colin Wu.
Miners look towards launches of such sophisticated mining rigs so as they provide benefits such as increased efficiency, extended hardware lifespan, and environmental benefits.