Bitcoin miner earnings have been a hot topic of discussion for the past three months. This mainly follows the decline in cash flow from mining machines due to the falling price of BTC, and which has hurt revenues for bitcoin miners, seeing them fall to yearly lows. However, while the market has recouped some of its lost value, bitcoin miners are starting to fare better in terms of revenue, which could be a drag on recent sales.
Miners’ income increases
Bitcoin miners’ daily earnings had fallen to the low of $17 million. At that time, revenue from bitcoin miners was dropping in double-digit percentages following the fall in the price of BTC. This would in turn trigger massive sell-offs from miners as they scramble to maintain their operations.
Miner earnings are now bouncing back from rising prices. Last week, the price of BTC had risen to over $24,000, and this increase is reflected in miner earnings. According to data from Arcane Research, daily earnings for miners jumped 5.32% from $20.4 million the previous week to $21.55 million last week. This reversal of the downward trend once again helped miners become more positive about gas flow, albeit by a small margin.
However, daily miner earnings would be one of the few bitcoin metrics to be green last week. The percentage of miner revenue made up of fees fell significantly, dropping 0.68%, with fees per day down 28.12% to $317,246 from $441,342 the previous week.
BTC retakes $23,000 | Source: BTCUSD on TradingView.com
Daily trading volumes are also down, which explains the lower commissions earned per day. Trading volume was down 14.38% for the week, while average trade value was down 15.66% to $254,429.
Will Bitcoin Miners Stop Selling?
Bitcoin miners had to offload thousands of their mined BTC to fund their operations. April and June saw bitcoin miners sell more BTC than they produced for the month for the very first time. This marked the beginning of the selling trend for these bitcoin miners.
To date, bitcoin miners have sold over 4,000 BTC due to declining profitability. However, with miner revenue rebounding, there may be a slowdown in sales, especially for public miners.
One of the reasons that could put an end to this is the increase in the value of mining stocks as BTC expands. An example is the stock Marathon Digital which is up more than 28% from its low last week. MARA is currently trading at $12.96 after hitting a low of $10.08 last week.
Featured image from Bitcoinist, chart from TradingView.com
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