Bitcoin mining revenues are skyrocketing after BTC gained nearly 100% in the last 13 weeks. According to the latest data published by crypto analytics and on-chain market analysis firm, Glassnode, Bitcoin miners have been making approximately $50 million daily on average for the last 30 days.
Glassnode mentioned that in 2020 Bitcoin mining firms were making nearly $12 million per day. The analytics firm also highlighted the latest accumulation trend by BTC miners. The world’s largest digital currency is currently trading near $57,000 with a market cap of more than $1.06 trillion.
“Bitcoin miners have been making more than $50 Million per day for the past month. Put into perspective: A year ago this number was around $12 Million, that’s a 4x increase, despite the block subsidy being cut in half. Are Bitcoin miners selling? I don’t think so. We saw increased outflows in the run-up to $40k, but the miner position change has turned back positive. Also, note that these on-chain miner volumes are not significant compared to the rest of the network,” Rafael Schultze-Kraft, Co-Founder and CTO at Glassnode mentioned on Twitter.
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Bitcoin miners are taking advantage of the recent price rally in the world’s largest cryptocurrency. BTC price registered an all-time high of approximately $61,000 in March 2021. The digital currency started this year at a price level of nearly $29,000.
Bitcoin Mining Fundamentals
Glassnode CTO highlighted some key fundamentals behind Bitcoin mining. “Bitcoin’s average hash rate hit a new ATH yesterday, crossing a daily average of 178 exahash / sec for the first time in history. Miners keep spinning up machines, hash rate is up only,” Kraft added. Despite the reason that Bitcoin’s market dominance has dropped below 56%, the overall on-chain activity of BTC has increased significantly above the $1 trillion market cap.
JPMorgan, one of the largest investment banks in the world, recently released a research note about Bitcoin and gave a long-term price target of $130,000 per BTC.