Journalist
Posted:
- Miner revenue soared as BTC’s price surged.
- Bitcoin’s hashrate also grew, which could cause a rise in mining difficulty.
Bitcoin’s [BTC] price surge has been extremely beneficial for holders over the last few months. However, as time passed, miners could finally reap the benefits of BTC’s rally as well.
Revenue on the rise
Bitcoin miners generated an average daily revenue of nearly $2 million from transaction fees in 2023, marking a remarkable 400% year-over-year increase.
This surge in revenue not only reflects the growing demand and usage of the Bitcoin network, but also significantly enhances the profitability of mining operations.
The elevated revenue generated by miners plays a crucial role in reducing selling pressure on Bitcoin. When miners have higher earnings, they may be less inclined to immediately sell their newly minted coins to cover operational costs.
This reduction in selling pressure contributes to a more balanced supply and demand dynamic in the market.
The potential impact on Bitcoin’s price is noteworthy. With miners holding onto a larger portion of their newly minted coins, the decreased supply in the market could create conditions that favor price appreciation.
The diminished selling pressure from miners, coupled with sustained demand, can provide a supportive environment for Bitcoin’s price to grow further.
Revenue collected via transaction fees by bitcoin miners averaged nearly $2,000,000 per day in 2023. This is up 400% year over year. pic.twitter.com/zZjUwy1Gbh
— Jameson Lopp (@lopp) December 23, 2023
Hashrate spikes
Moreover, the hashrate around BTC also grew. According to recent data, the hash rate for Bitcoin has experienced its fourth-highest adjustment this year. As we approach the halving in April, the hash rate has seen a 343% increase in this cycle.
A higher hash rate generally indicates increased computational power dedicated to securing the Bitcoin network. This enhanced security is crucial for protecting against potential attacks and ensuring the integrity of transactions.
Additionally, a stronger hash rate contributes to the overall resilience and stability of the Bitcoin blockchain.
The growth in hash rate can directly influence mining difficulty levels. The Bitcoin protocol adjusts the difficulty of mining tasks approximately every two weeks to maintain a consistent block creation time.
Read Bitcoin’s [BTC] Price Prediction 2023-24
A higher hash rate may result in increased difficulty, potentially affecting the profitability and participation of miners.
Source: Glassnode
Only time will tell how these factors will impact BTC in the long run. The king coin was trading at $43,659.02 at press time, with its price growing by 0.17% in the last 24 hours.
Source: Santiment
