According to the latest research, important on-chain metrics such as income from Bitcoin mining have returned to the halving level.
Data from analytics provider Glassnode suggests Bitcoin mining revenues are back to where block rewards were twice as high as they are now.
When the halving happened in mid-May, BTC prices were around $ 9,000. By November 18, they had doubled to $ 18,000, suggesting a correlation as miners must sell enough of the asset to cover their expenses while staying in profit. Higher prices mean higher profits.
#Bitcoin Miner’s earnings are back at pre-halving levels.
Diagram: https://t.co/Ao9DodRwqi pic.twitter.com/PwUHPaKz8L
– glassnode (@glassnode) November 18, 2020
Blockchain.com, which tracks the total value of rewards for basic coin blocks and transaction fees paid to miners, confirms the results.
Daily revenue, which includes block rewards and transaction fees, was $ 21.2 million on November 18, the highest in a year. The previous peak was on May 6, when it hit $ 20.6 million. After the halving event, which saw block rewards drop from 12.5 BTC to 6.25 BTC, sales dropped to just over $ 7 million per day.
Mining revenues slumped earlier on March 18 this year after the pandemic-induced crash in the crypto market lowered Bitcoin price by 45% in less than a week. When mining revenues plummet, miners with excessive indebtedness can begin to capitulate due to adverse market conditions.
The opposite appears to be happening right now as prices near their all-time highs.
Another factor that indicates the network is healthy and the miners happy is the hash rate, which is now just 10% from its highest ever level.
After the end of the rainy season in China, where most of the bitcoin mining takes place, the rigs were shut down in preparation for the move as cheap hydropower dried up. This led to a seasonal slump in the hash rate from 37% to below 98 exahashes per second.
Since then, the hash rate – which many believe correlates with prices – has rebounded to 143.4 EH / s, which is not far from its high of 157.6 EH / s in mid-October, according to Bitinfocharts.com .
The current mining revenue and hash rate rebound are a good sign of the bull market continuing, which may push Bitcoin prices to new all-time highs before the end of the year.