Sunday, February 5, 2023

Bitcoin Mining Daily Revenue After China’s Crackdown Increases

After China’s crackdown on crypto-related activities in the country, many of the miners went offline and now they are collecting in the big bucks.

Compared to last week, the daily revenue generated through Bitcoin Mining has been increased by 10 percent, or $4.3 million, this week, reports Arcane Research on August 18.

The report further states that the per-day transaction fees generated through mining have been up by 22 percent of $118,000.

According to the data released by YCharts, this is the longest trend since China’s crackdown on Bitcoin. On June 27, miners revenue bottomed out for the year at $13 million, but on August 17, it reached $48 million.

On August 16, Glassnode Insights, in its report stated, “As protocol difficulty adjusted in response to the Great Migration, miners who remained online have now seen their BTC income grow by 57% per hash to around 8.8 BTC/EH.”

In June 2021, the Chinese government restricted the banks from offering their services to crypto miners in the country, due to which 90 percent of the miners shifted their businesses to other places. 

The migration affected the blockchain’s health deeply. The hashrate for mining a bitcoin fall by around 50 percent, which showed, how much miners were dependent on the Chinese mining environment.

After China’s crackdown, the miners, who operated outside the country, received more BTC. While talking about it, Will Clemente, a lead analyst with Blockware Solutions, tweeted, “Less competition=higher profitability for the miners still operating.”

On April 12, Bitcoin reached its all-time high position at $63,595, however, in May it collapsed, then, in June and July the digital asset was struggling but could reach below the mark of $40,000. 

The movement of Bitcoin was not very convincing for miners, therefore, they did not cash out the BTC they have received as a reward, instead, they stockpiled it.

In July, as the market grows, the net position of miners started becoming progressive, which indicated that they are not selling as much as they are holding. The movement also shows that the price is on its way up. 

Since last month, the value of Bitcoin has been increased by $17,000 and the reason behind this growth is considered to be the fewer sale by miners, as it put less downward pressure on price. 

Even though the value is going up, it has been difficult for miners to earn rewards in the Bitcoin network, from now. 

Glassnode, in its report, has stated, “Over the course of the last two months, hash-rate has increased by around 25% from the lows.”

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