- Compared to September’s meager figures, this was an important milestone.
- The BTC rally was followed by a noticeable drop in the number of coins in miners’ wallets.
Bitcoin [BTC] miners gave the thumbs up to the latest market rally, which saw the king coin jump to its annual high of $35,000.
Read BTC price forecast for 2023-2024
The jump in market value boosted Bitcoin’s hash price, which is seen as an important barometer of miner profitability. According to the Hashrate Index, the hash price topped $73 per PetaHashes per day (PH/day), the highest in two months.
Compared to the September average of $61.71/PH/day, this was a significant milestone for the mining industry.
Source: Hashrate index
Hashprice reacts to the market rally
Hashprice is a well-known mining metric that quantifies how much a miner can expect to earn from a specific amount of hashrate. It is positively correlated with changes in Bitcoin’s price, which explains its significant increase in value.
However, aside from the price of Bitcoin, the hash price also responds positively to the transaction fees that miners earn. After all, transaction costs make up a significant portion of miners’ revenues.
As prices rose, users crowded the Bitcoin network to buy and sell the asset. With more users, transactions increased, as did the fees miners received for validating such transactions. As a result, the share of miners’ revenues earned through fees also increased.
Source: Glassnode
Miners dump their assets to make a profit
Miners use block rewards, including fees, to offset costs associated with mining equipment and electricity. Therefore, they routinely liquidate their assets to raise cash.
When Bitcoin prices are muted, miners generally switch to a hoarding mentality and wait for a meaningful increase.
According to on-chain analytics platform CryptoQuant, the BTC rally was followed by a noticeable drop in the number of coins in miners’ wallets. This served as evidence that miners were making money to take advantage of the higher prices.
Source: CryptoQuant
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A major development for the mining industry
Coinciding with the spike in profitability, Bitcoin miners had a little more to cheer about. One of the world’s largest Bitcoin ASIC manufacturers MicroBT unveiled its highly anticipated M60 series at an event in Dubai, as reported by a journalist Colin Wu.
Miners look forward to the launch of such advanced mining rigs as they offer benefits such as increased efficiency, longer hardware lifespan and environmental benefits.