Bitcoin has grown into a tremendously popular and emerged as the strongest cryptocurrency; thus, its miners gain substantial rewards even after the profits decreased due to halving in May.
After the Bitcoin halving in the reward was reduced to fifty percent, however, the increase in valuation of the BTC helped the miners attain the same level of revenue, matching up the pre may valuation.
Data from Glassnode clearly indicates that the miner revenue is back to its pre halving price. The cryptocurrency markets crashed in March this year after the onset of the Covid-19 pandemic plummeting the Bitcoin price massively. However, the Bitcoin network is extremely healthy right now, and the hash rate is reaching its highest ever level, making miners extremely hopeful of the rewards.
For the uninitiated, Bitcoin halving happens every four years or after every 210,000 blocks are mined, in which the mining rewards are cut into half. This reduces the mining gains substantially, making it more difficult for the miners to gain rewards; however, this is done to maintain the valuation of the BTC and create more demand for the same.
Bitcoin trending towards an all-time high
On Wednesday this week, Bitcoin valuation hit an all time high of US 18,300 with an increase of almost 11 percent as a large number of investors rushed into using the cryptocurrency. The price movement of Bitcoin was massive, which creates a gigantic positive trend for the BTC leading to a projection of hitting a high of even 200000 USD by year-end. With such a high valuation, Bitcoin miners were able to cover up for the decrease in mining rewards due to halving in May.
Bitcoin’s bullish run
The on-chain metrics suggest that the Bitcoin mining revenues have hit back to the pre-halving levels, thanks to massive institutional investment in Bitcoin and various financial and investment moguls openly supporting the cryptocurrencies. While the BTC prices were recorded at around $9000 after the Bitcoin Halving in May, the price has almost doubled in November. With the price returning to the pre-May levels, the Bitcoin miners have been able to accelerate their gains with rewards and hashrates going up. The mathematics is simple here, the higher price of the BTC means higher gains for the miners.
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