How BTC miners made $4M in 60 minutes, the highest revenue in Bitcoin’s history

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Bitcoin's history: How BTC miners made $4M in 60 minutes

Bitcoin mining fundamentals are growing stronger as miners kill from higher BTC prices., earning highest hourly revenue in Bitcoin’s history.

Glassnode released a data revealing how Bitcoin (BTC) miners made over $4 million in just under an hour on Feb. 12, making it the biggest hourly revenue in Bitcoin’s history.

Bitcoin witnessed the third block reward halving in its history in May 2020, reducing the amount of new Bitcoin mined in half.

”After a block reward halving, the amount of BTC miners can mine using computing power decreases by half. Hence, miner revenues decrease by 50% overnight, which could cause strain on mining operations in the short term”.

At the same time, the hash rate of the Bitcoin network is also at new all-time highs, with the fourth consecutive upward difficulty adjustment expected to be approximately 2.5 per cent in seven days.

Bitcoin's history: How BTC miners made $4M in 60 minutes
Bitcoin hash rate and difficulty. Source: Digital Assets Data

Ok now let’s look at why are Bitcoin miner revenues surging

Block reward halving occurs every four years to reduce the market rate of the remaining supply of Bitcoin.

As Bitcoin is nearing its fixed supply of 21 million, the pace at which the new BTC is being mined is being halved.

But halving can put huge pressure on miners who depend on the BTC they mine to cover their operating costs in the short term.

Theoretically, when a halving occurs, the price of Bitcoin is expected to rise due to a lower supply of new coins entering the market.

As a result, a higher BTC price can make up for a lower number of BTC miners being rewarded with block mining.

Bitcoin's history: How BTC miners made $4M in 60 minutes
Bitcoin hourly miner revenue. Source: Glassnode

The biggest hourly revenue in history was created by Bitcoin miners this week, despite mining half the BTC they used to mine compared to last year.

Just this week, Bitcoin miners have generated the largest hourly revenue in history, despite mining half the BTC they used to mine compared to last year.

“#BTC miners just made over $4 million in a single hour – the highest hourly miner revenue in Bitcoin’s history so far.”

Another reason behind the rising miner revenue is the increasing number of transactions on the network and the accompanying fees paid to miners as a result. Miner revenue is comprised of the transaction fees plus the block rewards collected by miners, with the former comprising roughly 13.5% of the total revenue, according to data from Clarkmoody.

Now a bothering questions has risen, will miner revenue continue to increase with BTC price?

PlanB, a pseudonymous Bitcoin researcher behind the popular price model Stock-to-Flow (S2F), said Bitcoin is on track to reach $288,000.

The S2F model largely relies on BTC’s supply (the stock) and the new Bitcoins mined (the flow), predicting the price trend of BTC based on its scarcity. PlanB wrote:

“#bitcoin price track after 2020 halving is between 2012 and 2016 tracks. I added S2F ($100K) and S2FX ($288K) model targets. Targets are average prices, actual BTC price will oscillate around targets. If 2021 bull market follows 2017 then $100K it is, if we follow 2013 .. $288K.”

Bitcoin stock-to-flow model. Source: PlanB Currently, Bitcoin is consolidating after reaching a new all-time high above $48,500. If the price of BTC nears $60,000, it would cause the market capitalization of the cryptocurrency to surpass $1 trillion.

Moreover, at around $56,000, analysts say that there is a big options gamma squeeze awaiting for Bitcoin.

Hence, the probability of BTC rising to around $53,000 to $56,000 remains high in the first half of 2021. Lex Moskovski, a cryptocurency researcher and a quant trader, also emphasized that the market sentiment remains positive due to rising institutional interest.

In his word he said:

“Any institution, company, and individual that holds any of the ETF below or plain $TSLA, holds #Bitcoin as well. Tesla has pulled the ultimate trojan horse. Let’s welcome Warren Buffett and Swiss National Bank. Holding TSLA? You are long $BTC.”

Meanwhile we also brought you a report that as Twitter CEO, Jack Dorsey and American rapper Jay-Z announced plan to establish a 500 bitcoin blind in India and Africa, Nigeria’s Security and Exchange Commission SEC has suspended its planned regulation of crypto currencies in the country.

 

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