Back in mid-May, when halving event happened, Bitcoin was trading at roughly $9,000. From that level, it has doubled to $18,000 on November 18.
This indicates a correlation as miners have to sell off at least a portion of their rewards to manage their operating costs in order to remain profitable. Higher Bitcoin prices imply a surge in profits.
Blockchain.com, which monitors the aggregate value of coin-based block rewards and transaction charges paid to miners affirmed the outcome.
#Bitcoin miner revenue is back at pre-halving levels.
Chart: https://t.co/Ao9DodRwqi pic.twitter.com/PwUHPaKz8L
— glassnode (@glassnode) November 18, 2020
The daily revenue numbers, which encompasses block rewards and transaction charges, was $21.20 million for November 18, the highest in a year. The earlier high was on May 6, which it hit $20.60 million. After the halving event, which brought down block rewards from 12.50 BTC to 6.25 BTC, revenue plunged to a mere $7 million per day.
Back in March 18, mining revenue plunged following the pandemic triggered crypto market crash, which erased 45% off the price of Bitcoin within a week. When mining revenue declines steeply, overleveraged miners can start capitalizing due to adverse market environment.
The reverse is seen to take place at the instance prices reach their all-time peak. Hash rate, which is only 10% below the all-time peak, is another criteria demonstrating that the network is healthy and miners are happy.
As the rainy season ended in China, where a major portion of Bitcoin mining happens, rigs were switched off in an attempt to relocate as cost free hydroelectric power fades away. This has resulted in a seasonal hash rate decline of 37% to lower than 98 exa-hashes per second.
From then onwards, hash rate, which several people trust to be linked to price, has rebounded to 143.40 EH/s, which is near to mid-October high of 157.60 EH/s, as per Bitinfocharts.com.
The prevailing mining revenue numbers and hash-rate recovery is a positive sign for the extension of the bull market, which may lift Bitcoin to a new historical high by the end of 2020.