Revenue for bitcoin miners reached all-time highs last week as the biggest cryptocurrency’s price continued to hover near record highs.
Bitcoin Mining Daily Revenue Reaches an All Time Record as Price Rises
According to data from CryptoQuant, daily miner earnings hit US$78.6 million on March 7, exceeding the record established in April 2021 during the previous cryptocurrency bull market.
In addition to receiving fees from users, bitcoin miners are rewarded with new coins for validating and adding transactions to the blockchain network. The increase in miner earnings coincides with a 70% increase in the price of bitcoin this year.
The price of Bitcoin started to rise last year after an extended drop caused by several cryptocurrency scandals and bankruptcies in 2022. This increase was further fueled by a net influx of almost $9.5 billion into a group of US spot bitcoin exchange-traded funds that made their debut on January 11.
Predictions of higher prices have also been aided by the news that Bitcoin will halve in April, reducing the increase of the coin’s supply and slashing miner payouts in half. The situation has significantly improved for miners compared to the worst of the cryptocurrency winter when many of them went bankrupt.
For example, during the last 12 months, the value of the Valkyrie Bitcoin Miners ETF, which contains businesses like CleanSpark and Marathon Digital Holdings, has more than doubled.
Businesses are doing everything they can to set themselves up for success. Thirteen of the largest mining corporations have ordered more than $1 billion worth of specialized computers since February 2023.
The Most Valuable Cryptocurrency in the World Reaches a Record High on Monday
As the biggest cryptocurrency’s rise continued to increase, bitcoin reached a record high on Monday of almost $72,000.
After peaking at $ 72,739, bitcoin was up 4.4% at $72 649 as of last night. With money pouring into new spot ETFs and expectations that the US Federal Reserve would soon lower interest rates, the most valuable cryptocurrency in the world has surged.
The supply of bitcoin, which has a 21 million token cap, is expected to tighten in April during the so-called “halving” event. The rate at which new supply is added to the market and the amount paid to cryptocurrency miners is cut in half every four years, which helps to keep the price stable.
With fewer than 20 years of experience as a financial asset, it is still quite difficult to anticipate the price trend of Bitcoin. In November 2021, a few months after the retail euphoria had propelled Bitcoin to its previous peak, the cryptocurrency plummeted, erasing half of the crypto sector in the process.
Reputable Investment Exchanges to Introduce
The financial watchdog in Britain said on Monday that it will now allow reputable investment exchanges to introduce exchange-traded notes backed by cryptocurrencies, making it the latest regulator to open the door for digital asset trading instruments.
Only professional investors, such as investment firms and credit institutions authorized to operate in financial markets, will be able to purchase these products, according to a statement released by the Financial Conduct Authority (FCA), the UK regulator.
Retail investors may suffer if financial institutions produce bonds known as crypto exchange-traded notes (ETNs) that mirror the performance of underlying assets, according to a warning from the FCA.
US Commodity Futures Trading Commission
Still, the investment community as a whole is seeing an increase in demand. Weekly data from the US Commodity Futures Trading Commission revealed that asset managers currently had the largest bullish position in bitcoin futures on record.
The net long position held by asset managers increased to 15 531 lots in the week leading up to March 5th, valued at $5.5 billion depending on the current price of bitcoin. This position is typically understood to cover holdings of institutional investors, such as mutual funds and pension funds.
ALSO CHECK:
- South Africa’s Planet42 Receives $16 Million from Standard Bank to Help…
- Nigerian Fintech PalmPay Launches Two New Products
- Vodacom and Estranged Former Employee To Settle ‘Please Call Me’ Dispute…
- Egyptian Adtech Startup dKilo Secures $3.2 Million In Seed Funding
- Bitcoin Hits $72,000 for the First Time
