By: Isha Das
Bearing testament to the health of the Bitcoin network, miner revenue surged to a 19-month high in November, as miners anticipate big events in the coming year. This revenue, which comprises block rewards and transaction fees, provides insight into the potential economic implications of the upcoming halving, expected to halve the block rewards.
Notably, from the beginning of the year till mid-2023, a decrease in the rolling sum of miner revenues, from $9.53 billion to $7.7 billion, hinted at a period of decreased revenue that could be attributed to lower Bitcoin prices, increased mining difficulty or even lower transaction fees. This trend, however, appears to have reversed by November, with the total mining revenue teetering on $9.34 billion.
On the other hand, the 365-day Simple Moving Average (SMA) of miner revenues points to a more stable landscape. Despite a nearly constant rolling sum, the rise in SMA, from $22.12 million in January to $25.6 million in November, implies recent months have been more lucrative for miners.
In line with this, the total daily USD revenue paid to miners has also soared significantly over the year, spiking to $46.30 million in November. The profitability of mining is largely tethered to price of Bitcoin, hence, the surge in revenue is ushering in bullish sentiment among miners, potentially leading to increased investment in mining infrastructure.
With the next Bitcoin halving imminent and Bitcoin ETFs on the horizon, the augmentation in the Bitcoin hash rate signals renewed dedication from miners. Additionally, rising transaction fees could signal increased network activities, impacting Bitcoin's market position and user behavior.