Bitcoin Miner Revenue Hits Second-Highest Day in History
Bitcoin’s price saw a significant rise of over 22% in April 2021, a period that coincided with Bitcoin miners recording their highest daily revenue ever at $77.3 million. This remarkable milestone was nearly matched on March 6, following a surge in Bitcoin’s price to over $69,200, which led to daily miner revenue reaching $75.9 million. The increase in miner revenue on this day, reported by Julio Moreno, Head of Research at CryptoQuant, happened simultaneously with Bitcoin miner Hut 8 announcing the closure of its mining site in Drumheller, Alberta, Canada, due to power outages and rising energy costs.
On March 6, the Hut 8 facility, which annually mines an average of 48 Bitcoin, constituting about 1.4% of the company’s assets and 11% of its hash rate, was highlighted. The $75.9 million revenue marked the second-highest day after the record $77.3 million on April 14, 2021, when Bitcoin was trading above $60,000. This event comes after the largest Bitcoin mining stocks fell by more than 27% in the three days leading up to March 1, as Bitcoin approached the $64,000 mark.
Mitchell Askew, a senior analyst at Blockware Solutions, suggested that investors might be growing weary of placing capital in Bitcoin miners ahead of the anticipated halving event. During this event, Bitcoin miner rewards will halve from 6.25 Bitcoin worth $417,279 to 3.125 Bitcoin worth $208,638. Following the previous peak in miner revenue, Bitcoin’s price dropped over 22% in the 11 days that followed, hitting a resistance of $49,066 on April 25 from $63,575 on April 14.
As of the 24 hours leading up to 9:53 AM UTC, Bitcoin’s price decreased by 0.54% to $66,768, with the world’s leading cryptocurrency showing over a 6.8% increase on the weekly chart. While most analysts remain optimistic about Bitcoin’s trajectory, pseudonymous Bitcoin analyst Dave Wave, in a March 5 X post, speculated that Bitcoin’s price could still dip below $44,000 throughout 2024. He expressed comfort with the uncertainty, suggesting that, technically and potentially at a pivotal resistance point with previous ATHs, the default expectation should be to adhere to the ongoing corrective movement at least to the bold dotted line.
