Bitcoin Mining Revenue Records Second-Best Day Amid Energy Crisis and Halving Concerns
Summary:
Bitcoin mining revenue achieved its second-highest day on record on March 6, coinciding with the closure of a major mining site operated by Hut 8 due to rising energy costs. The $75.9 million revenue figure came in just under the record $77.3 million earned in April 2021, when Bitcoin was trading over $60,000. Despite the recent revenue, there's caution among investors ahead of the anticipated "halving" of mining rewards, and a possible future drop in Bitcoin's price.
Revenue from Bitcoin mining eclipsed its second-highest day ever on March 6, directly following Bitcoin's (BTC) record-breaking price surge over $69,200. Julio Moreno, head of research at CryptoQuant, confirmed in an X post that Bitcoin miners netted $75.9 million on that day. This earnings boost coincided with the closure of Bitcoin miner Hut 8's Drumheller, Alberta, Canada site due to escalating energy prices and intermittent power supply. Announced on March 6, the 48 Bitcoins mined at the facility annually accounted for about 1.4% of the company’s assets, traded for 11% of its hash rate.
The day's $75.9 million earnings figure secures its place as the second-most profitable day in history, trailing behind the $77.3 million earned on April 14, 2021. At the time, Bitcoin was valued over $60,000. In the three days leading up to March 1, when Bitcoin reached a price point of $64,000, some of the most prominent Bitcoin mining stocks saw a decline of more than 27%.
Mitchell Askew, Blockware Solutions’ leading analyst, attributed the downturn to investors' hesitation to invest in Bitcoin miners ahead of the anticipated halving. This event will reduce the reward for mining Bitcoin, from 6.25 BTC (valued around $417,279) to 3.125 BTC (roughly $208,638), at the current rate.
Following the last peak in miner revenue, Bitcoin's price experienced a 22% dip in the next 11 days, dropping to a resistance level of $49,066 on April 25 from $63,575 on April 14. As of 9:53 am UTC, Bitcoin stood at $66,768 — a 0.54% drop in the preceding 24 hours and a weekly increase of 6.8%.
Despite analysts' positive outlooks for Bitcoin's future trajectory, market trends suggest that Bitcoin's price could fall below $44,000 in 2024. Dave the Wave, a pseudonymous Bitcoin analyst, mentioned this possibility in his X post on March 5, stating that the parabolic trend should continue unless there's a break at the bold dotted line.
Published At
3/7/2024 1:13:37 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.