Bitcoin mining firms achieved their highest month-to-month income ever in March, producing greater than $2 billion in block rewards and transaction charges.
This breaks the earlier report of $1.74 billion set in Could 2021.
simply in: #Bitcoin Miners generated a report $2 billion in month-to-month income, an all-time excessive.
The half is coming sizzling in two weeks 🙌
— Bitcoin Journal (@BitcoinMagazine) April 2, 2024
Of the $2 billion earned final month, about $85 million got here from transaction charges, whereas $1.93 billion got here from blanket help. (Miners obtain compensation for validating transactions and minting new bitcoins.)
The block help, paid for every block mined, is at the moment 6.25 BTC. However it would drop to three,125 BTC after the subsequent halving occasion in April. It will halve miners’ income from creating new bitcoin until there’s a vital worth rise.
Rising community exercise and growing Bitcoin costs contributed to a rise in miner revenues in March. The upcoming halving has created an pressing want for miners to maximise earnings earlier than earnings shrink.
The main US mining pool, Foundry, accounted for 29.4% of all blocks mined in March. The Chinese language AntPool pool took second place with 22.4% of blocks. The 2 accounted for greater than half of the month-to-month provide of Bitcoin.
Whereas miners loved their revenue growth final month, extra exchange-traded funds have amassed shopping for bitcoins on the open market. ETFs purchased practically 66,000 bitcoins in March, whereas miners produced solely about 25,500 cash.
This rising imbalance between provide and demand and the shortage related to the halving may result in elevated competitors to safe Bitcoin. The ensuing improve in problem might worth out much less environment friendly miners, stimulating business consolidation.
With rewards being halved inside weeks, miners face an more and more harsh atmosphere if Bitcoin’s worth fails to make up for the decline in issuance. But when historical past repeats, there may very well be a robust Bitcoin rally on the horizon, softening the income blow attributable to decreased block help.
