Bitcoin Miners Get Relief as Revenue Up 50% in January

By Timothy Fries | 2 month ago (30 Jan, 2023, 21:00 PM (UTC+04:00))
Bitcoin Miners Get Relief as Revenue Up 50% in January

Bitcoin mining revenue rose 50% to over $24.4 million from more than 15.3 million on Jan. 3, Blockchain.com data showed. While it relieves troubled bitcoin miners, the revenue remains down more than 30% year-over-year.

Bitcoin Mining Revenue Soars Above $24 million in One Month

Bitcoin mining revenue surged to above $24 million in January, marking a 50% increase in just 30 days, according to data by Blockchain.com. The jump comes after the mining revenue for the world’s top cryptocurrency tumbled to $13.6 million on Dec. 28, 2022, before slightly recovering to $15.3 million on Jan. 1, 2023.

However, bitcoin mining revenue remains down compared to January 2022, when it stood at more than $34.1 million. This represents a year-over-year decrease of more than 32%. The revenue soared beyond $50 million in February 2022 but quickly lost those gains as the crypto rout continued to deteriorate. Still, the latest 50% jump marks a notable relief for the embattled bitcoin miners.

The industry has witnessed several bankruptcies in the past year, including the well-known Core Scientific. The bitcoin miner filed for Chapter 11 bankruptcy protection in December 2022, with its liabilities ranging from $1 billion to $10 billion.

Bitcoin Network Adoption and Security Improving as Hash Rate Peaks

Meanwhile, the Bitcoin hash rate – the amount of processing and computing power provided to the bitcoin network through mining – continues to hit fresh all-time highs. It currently stands at more than 300 million EH/s, up from around 182 million EH/s in January 2022.

An increase in hash rate typically suggests rising network adoption and signals that the network is becoming more secure. While it does not suggest that BTC’s bear market is ending, a growing hash rate is usually a good sign for BTC owners as it indicates that the network is strengthening despite the extreme price decline in 2022.

Last year, the decline led to immense pressure on the mining industry as the U.S. Federal Reserve delivered several consecutive interest rate hikes, driving the U.S. dollar to a 2-decade high. This did not bode well for risk assets, including cryptocurrencies, pushing some of them to multi-year lows. The downturn worsened following the collapses of Terraform Labs in May and FTX in November.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, , for weekly analysis of the biggest trends in finance and technology.

Source from www.investing.com


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