Miners at the flagship crypto market are earning record revenues triggered by the growing number of transactions on the blockchain as the flagship Crypto asset gained relevance in global financial markets.
Data retrieved from Glassnode showed Bitcoin miners have been consistently earning more than $50 million per day for the past month.
About a year ago this number was around $12 million – that’s a 4x increase, despite the block subsidy being cut in half.
3/ #Bitcoin miners have been making more than $50 Million per day for the past month.
Put into perspective: A year ago this number was around $12 Million – that's a 4x increase, despite the block subsidy being cut in half.
— Rafael Schultze-Kraft (@n3ocortex) April 6, 2021
In addition, it is critical to note that Bitcoin’s average hash rate hit a new all-time high yesterday – crossing a daily average of 178 exahash / sec for the first time in history. Miners keep spinning up machines – hash rate is up only.
1/ A thread on #Bitcoin miner metrics.
First, some fundamentals.
Bitcoin's average hash rate hit a new ATH yesterday – crossing a daily average of 178 exahash / sec for the first time in history.
— Rafael Schultze-Kraft (@n3ocortex) April 6, 2021
What you should know
Bitcoin mining involves the act of solving tasks that come in the form of algorithms in affirming a transaction and fixing it within a block on the blockchain.
BTC miners who successfully mine a block are paid or rewarded in BTC. BTC miners also help in facilitating the security mechanism of the blockchain network by confirming transaction information or data to the Bitcoin ledger.
This confirmation process involves solving complex mathematical problems and a lot of computing power. BTC Miners are successfully rewarded with BTC for their contribution to the ledger based on their proof-of-work.
The flagship crypto asset has reinforced its status as the world’s newest trillion-dollar asset amid a growing number of transactions and the adoption by institutional investors.
That being said, recent data retrieved from Glassnode, a top crypto analytic trading firm, revealed Bitcoin Miners’ net position change metric flashing green as seen in the chart, revealing that miners are holding on to newly mined Bitcoins.
Whilst Bitcoin miners have an increasingly small influence as sell-side entities (when taking daily trade volume into consideration), their spending habits provided key insight into the market bias of some of the biggest bulls in the Bitcoin market.
Overall, in recent times, the Bitcoin market has posted remarkable strength and demand has kept the bullish run relatively in play.
Bitcoin ETF in North America has reached $1 billion in assets
The first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch.
According to a statement from its issuer, the first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch. What exchange-traded funds did to the conventional investing market for decades could happen to cryptocurrency players in a fraction of the time.
Investors are clamoring for crypto exposure, particularly in an exchange-traded fund wrapper, and the product from Toronto-based Purpose Investments, ticker BTCC, has seen a lot of interest. Although there are many crypto funds in Europe that work similarly to ETFs, this is the first ETF anywhere.
More than $165 million worth of shares were traded on the fund’s first trading day in February, a big start for a fund in the much smaller Canadian ETF market.
Its rapid cash accumulation reflects the high demand for Bitcoin products in the United States, as issuers compete for approval of the first Bitcoin ETF in the nation. Despite regulator resistance to accept the tactics, at least eight companies, including VanEck Associates Corp. and WisdomTree Investments, now have live applications with the Securities and Exchange Commission.
On Tuesday, Bitcoin surged to an all-time high of about $63,246 ahead of Coinbase Global Inc.’s upcoming IPO later this week.
There is an increasing expectation that a bitcoin ETF will be available in the United States in the not-too-distant future. Gary Gensler, the nominated chairman of the Securities and Exchange Commission, has taught cryptocurrency classes. The bitcoin market has exploded in popularity in recent months, attracting the attention of major financial institutions. Bitcoin ETFs are once again being sought by VanEck, Fidelity, and others.
One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. ETFs are also cheaper, which will put pressure on fees across the bitcoin ecosystem. Hence market sentiment may push the ETF higher.
Bitcoin is on fire, breaks above all-time high
The flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion.
Bitcoin prices ascended to a record high on Tuesday, hitting another milestone at above $62,000, a move that many reaffirm to be a bullish trend in the cryptoverse and one that can make other digital assets surge.
At the time of writing this report, the flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion. Bitcoin is up 2.99% for the day. The world’s most popular crypto now has a market value of about $1.17 trillion.
Adding credence to the strong bullish run in play is data retrieved from Glassnode pointing to the fact that holders of the flagship crypto are selling less, as Bitcoin deposits on exchanges hit a 30-day low.
BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702.
— glassnode alerts (@glassnodealerts) April 13, 2021
More details later…
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