Bitcoin miners’ $69 million payout: Boom before April halving?

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    The jump in hash rate came in response to mining difficulty hitting an ATH.
    Revenue raked in by miners on the 11th of April was close to $69 million, up 70% YOY.

On April 11th, the hashrate for Bitcoin‘s [BTC] mining reached a new record high. Miners maximized their machine usage in an effort to increase earnings before the upcoming halving event.

The average computing power of miners, represented by their 7-day moving hash rate, reached 642 exahashes per second (EH/s) on April 11th, as reported by Hashrate Index. This figure signifies a 5% rise in comparision to the previous week’s level.

Miners finding it tough to mine blocks

The recent rise in Bitcoin‘s hash rate is a probable reaction to the newest mining difficulty adjustment, which set an all-time high of 86.39 trillion.

The level of complexity in Bitcoin mining, represented by its mining difficulty, determines how challenging it is for miners to discover the next block in the Bitcoin blockchain. This level is adjusted approximately every 2,016 blocks, or about two weeks, to maintain a consistent 10-minute production time for new blocks. In other words, the greater the mining difficulty, the more computational power is required to unearth a block.

Before the significant reduction in mining rewards, scheduled around April 20th (tentative date), this was the final adjustment. In an industry where profits are shrinking, these events put a lot of financial pressure on the involved parties.

What to expect post halving?

Previously, the Hasrate Index predicted a more modest decrease of approximately 3.7% in mining hash rate following the halving event. This is less drastic than Galaxy Digital’s forecast suggesting a potential drop of between 15% and 20%.

Smaller mining companies with limited resources for buying advanced mining equipment might give up first.

During the challenging bear market, miner profits saw significant growth as Bitcoin’s value increased notably starting from October 2023.

On the 11th of April, miners earned nearly $69 million in total revenue according to AMBCrypto’s assessment of Glassnode’s figures, marking a significant 70% increase compared to the same period in the previous year.

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2024-04-12 16:23