Profits on the network are reaching new levels thanks to the rise in the price of Bitcoin. Amid rising prices, miners prefer to accumulate rather than sell.
Currently, Bitcoin (BTC) miners are generating significant revenue from securing and validating transactions on the network. This year alone, they have earned USD 6.059 million in rewards for the issuance of new coins and the payment of fees.
It is possible to calculate the average of what miners have earned daily by dividing the total amount between the days elapsed in 2021. They are generating almost USD 50 million per day, equivalent to about USD 2 million per hour.
March Was the Most Profitable Month for Bitcoin Miners
During March and April, the Bitcoin network had its highest amount of revenue from mining. In the third month of the year, there was an income of USD 1.75 billion, being the most profitable month for Bitcoin miners. Of that amount, USD 1,583 million comes from the issuance of BTC and another USD 167 million from transaction fees.
In April, the figure that miners earned was similar but slightly lower, according to data from CoinGecko. In the fourth month of the year, there was a total income of USD 1.7 billion, at a rate of USD 1.46 billion in rewards and USD 247 million in fees.
The boost in revenue growth started in January when miners generated USD 1.12 billion. This was a representative figure as the network had not exceeded USD 1 billion per month since January 2018. At that time, revenues reached a total amount of USD 1.02 billion.
In February, there was revenue generation growth of USD 1.36 billion, the third-best for Bitcoin miners. So far in May, there have already been revenues of USD 126 million, totaling USD 6,059 million.
The bullish cycle that the market of cryptocurrencies experiences, leading many to reach all-time highs, is driving the figures higher. Regarding Bitcoin, the main cryptocurrency on the market was trading at USD 64,671 in mid-April.
Miners Prefer To Accumulate (“Hodl”) Bitcoins Rather Than Sell Them on the Market
Bitcoin miners are generating significant figures for their contributions to the network. However, that does not necessarily mean that they are spending their coins. On the contrary, miners are selling less Bitcoin amid the bullish market, according to Glassnode metrics.
That report indicates that the average amount of Bitcoin that miners transferred to exchanges in seven days in April dropped to 152.77 BTC. That was a figure not seen since October of last year.
In late February, Bitcoin sales among miners began to decline. That trend could be influencing the increase in the price of the pioneering cryptocurrency. That is due to the lower supply of coins in the market while the demand remains.
There is little evidence of the role that miners play in the declines in Bitcoin’s price, according to a study by Coin Metrics. The truth is that, when there are not enough coins available in the market, its price will grow as a result of demand.
By Alexander Salazar
