On-chain data shows that Bitcoin hashrate has recently halted its uptrend despite the fact that miner revenue is currently sitting at a significant level.
Bitcoin miner income has seen a recent increase
In a new post On X, CryptoQuant author Axel Adler Jr. discusses the latest trend in total miner revenue for Bitcoin. “Miner’s gross income” measures, as its name implies, the total amount of revenue that miners are collectively earning through their activities on the BTC network.
Miners earn their revenue through two means: block subsidies and transaction fees. The first of these, block subsidy, refers to the rewards (in BTC) that miners receive as compensation for solving blocks on the network.
The block subsidy is given by the network and is always fixed in BTC value. In contrast, the other part of a miner’s revenue, transaction fees, are paid to miners by individual senders on the network and are highly variable.
This is because users pay only as much as the fee is worth depending on the traffic conditions at that time. Blockspace is limited, so if congestion exists on the network, senders who want their transfer first will have to pay significantly more to give miners priority.
Generally, the transaction fee component of miner revenue is much smaller than the block subsidy. Below is the chart shared by the analyst, which shows how the total miner revenue for Bitcoin has changed over the past several years.
Looks like the value of the metric has gone up in recent months | Source: @AxelAdlerJr on X
As seen in the graph, total miner revenue peaked in the early months of 2024, but it suddenly dropped around April. The reason for this decline was The fourth half.
Halvings are periodic events on the Bitcoin blockchain occurring every four years that permanently halve the block subsidy. Given that miners depend on the block subsidy for their income, it is not surprising that this event proves disastrous for their revenue.
From the chart, it is clear that the indicator has made some recovery over the past few months as its value has now reached the $45 million mark. This is still significantly lower than the 2024 peak, but still higher than in previous cycles.
This improvement in total miner revenue is due to increased activity on the blockchain, but the main factor is the price increase that Bitcoin has seen. The USD value of the block subsidy naturally increases as the spot price of the asset increases.
Interestingly, despite revenues being at a significant level at present, providedA measure of the total amount of computing power that miners have added to the blockchain is actually going down.
The trend in the 7-day average BTC Hashrate over the past year | Source: Blockchain.com
Hashrate can be considered a reflection of sentiment among Bitcoin miners and at this point, it would appear that these chain validators are being cautious as they hold back their expansion, potentially because they want to see BTC bull. How will the run come out? of the present indefinite period.
BTC price
Bitcoin has been volatile over the past few days as its price has largely moved in both directions. Currently, the coin is rising with its price crossing $105,000.
The price of the coin appears to have seen overall flat movement recently | Source: BTCUSDT on TradingView
Dall-E, featured image from Blockchain.com, chart from TradingView.com
