According to a recent study, important accounts on the chain such as Bitcoin mining (BTC) revenues are back to pre-cut levels.
Data from analyst provider Glassnode shows that Bitcoin mining revenues are now back to the same level they were when block rewards were twice what they are now.
When it was halved in mid-May, the price for BTC was around $ 9,000. On November 18, it doubled to $ 18,000. This suggests a link, as the miners must sell enough of the asset to cover the costs as long as the business remains profitable. Higher prices mean more profits.
Blockchain.com, which tracks the total value of coin rewards and transaction fees paid to miners, confirmed the results.
Daily revenue, which includes block bonuses and transaction fees, was $ 21.2 million as of November 18, the highest in a year. The previous peak came on May 6, when it reached $ 20.6 million. After cutting in half, with the block reward falling from 12.5 BTC to 6.25 BTC, revenue fell to just over $ 7 million per day.
Mining revenues fell earlier, on March 18 this year, after the cryptocurrency market that fuels the epidemic cut 45% of the value of Bitcoins in less than a week. When mining yields drop, weary miners can start giving up due to unfavorable market conditions.
The opposite appears to be happening now as prices are near record levels.
Another factor indicating that the network is healthy and miners happy is the hash rate, which is currently only 10% of the level cap.
After the end of the rainy season in China, where most of the bitcoin is extracted, rigs were stopped in preparation for the move when they ran out of cheap hydropower. This resulted in a seasonal drop in the tick rate from 37% to less than 98 rashes per second.
Since then, the hash rate, which many believe is related to the price, has risen to 143.4 EH / s, which is close to mid-October at 157.6 EH / s, according to Bitinfocharts.com.
Current mining revenue and hash rate recovery bode well for continued development of the beef market, which could push Bitcoin prices to an all-new high for the rest of the year.