With the price of Bitcoin (BTC) peaking since January 2018, Bitcoin mining is becoming more profitable due to a number of factors.

According to Blockchain.com data, BTC revenue soared to levels not seen since the third half of bitcoins in May 2020, lowering the mining block reward from 12.5 BTC to 6.25 BTC.

Thus, the income of BTC miners on November 4 was $ 20.8 million. According to Blockchain.com, this is the highest since September 2019, when the block miner bonus was twice what it is now.

Miner’s income BTC (USD). Source: Blockchain.com
The jump in income for BTC miners is due to a doubling of the bitcoin price after it halved in May. On Nov 4, the price reached a new 2020 high of $ 15,950, up more than 20% in the past seven days.

The jump is also due to the simultaneous increase in Bitcoin transaction fees. As reported by Cointelegraph, Bitcoin transaction fees jumped nearly 200% at the end of October. Consequently, the BTC miner’s commission income ratio increased significantly and amounted to $ 4.15 million, or about 20% of total miners ’income.

Amidst equivalent revenue growth, some miners are likely to start making money at this point.

According to CryptoQuant analysts, some miners may have to start selling BTC as the miner’s position index is currently around 4. Values ​​above 2 indicate that most miners are selling.

The total flow of the mining dam. Source: CryptoQuant
Additionally, there was a noticeable increase in transactions from miners to the stock markets as the price crossed $ 15,000. However, the amount is still relatively small compared to the level of churn that was halved.

CryptoQuant CEO Ki Yong Joo said of the sharp rise in “insurance” outflows, noting that while miners are cautious, most people are likely to expect bitcoin prices to rise.

Source: CoinTelegraph

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