Bitcoin miners see hope after months of falling profits

Bitcoin’s recent price increase has dramatically changed mining activity on the network. CryptoQuant analyst Unchained found that the coin has increased in value by 68% year-to-date due to increased block space demand, leading to higher fees per transaction.

According to Unchained, the BTC bull run since the beginning of the year has resulted in high network activity on the Bitcoin blockchain. As a result, there is an ever-increasing demand for block space on the network. Therefore, users have to pay fees to incentivize miners to prioritize their transactions over others in the mempool, resulting in an increase in total miner fees.

As for why the demand for block space on the Bitcoin network has skyrocketed recently, the analyst noted:

“Bitcoin appears to be being withdrawn from exchanges at a breakneck pace, which is likely the main reason for the increase in transaction fees. This is because holders want to keep their bitcoins safe off exchanges. Banking crisis in the US This has led to an increase in the number of people withdrawing bitcoin from exchanges. As more and more people lose faith in the traditional banking system, they are turning to cryptocurrencies to protect their assets.”

Source: CryptoQuant

Analyst Achraf Elghemri assessed miner revenues on the Bitcoin network and found that increased transaction fees on the network make miners profitable due to increased demand for block space.

Elghemri checked the Puell Multiple Index and found that the total BTC earned by miners processing transactions on the network has increased “due to profiting from the growing market and covering mining costs.”

bitcoin

Source: CryptoQuant

Glassnode data shows that the total revenue of miners reached a high of 1182 BTC on March 23, which is also the highest value of the chain in the past three months.

bitcoin

Source: Glassnode

Bitcoin holders have good reason to smile

Since the beginning of the year, the value of BTC has increased by 68%, which has brought profits to many holders – the highest value they have seen in the past year.

Data from Santiment states that the token has an MVRV ratio of 43.17%. Therefore, if all these holders sell their tokens at the current market price, they can expect to earn an average return of twice the initial investment.

Additionally, BTC’s profit/loss ratio only shows positive values ​​for most of the year. After the collapse of Silicon Valley Bank, the indicator dropped sharply as the value of BTC dropped and the “underdogs” left the market.

However, this gives way to “new money” re-entering the market and driving up prices along with the necessary liquidity.

bitcoin

Source: Santiment

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Mingying

According to AMBCrypto

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