By
Temitope Olatunji
April 26th, 2024
Bitcoin miners, who are currently receiving 900 coins per day, have significantly benefited from the recent BTC spike above $72,000 for the first time in crypto history.
Unlike the 2021 cryptocurrency bull run when Bitcoin (BTC) price reached a peak of $69,000, the flagship coin is in the early stages of a macro bull cycle after rallying above $72,000 on Monday. As a result, Bitcoin miners have significantly benefited from higher spot prices. According to market data provided by CryptoQuant, Bitcoin miners earned a whopping $78.6 million on March 7, thus surpassing the prior peak of $67.1 million that was set in April 2021.
Notably, Bitcoin miners are counting less than 40 days before the fourth halving occurs, which will reduce their daily rewards to 450 coins. As a result, Bitcoin must compensate for the halving with higher prices in order to incentivize the miners to keep securing the network. Furthermore, BTC miners will be compelled to update their hardware components since the mining difficulty will experience a sharp uptick in the coming months.
As of this writing, the total Bitcoin mining was around 606 million hash rate TH/s, with about 35,425 Bitcoins left to mine until the next halving.
Better Days Ahead for Bitcoin Miners
Bitcoin miners are integral to the mainstream adoption of Bitcoin and, thus well positioned to benefit from the confined bull run. Since the approval of the dozen spot Bitcoin exchange-traded funds (ETFs) in the United States, the demand vs supply shock has largely fueled the bullish outlook.
Moreover, leading financial institutions from Wall Street led by BlackRock Inc (NYSE: BLK), with around $10 trillion in assets under management, have been accumulating an average of 10k Bitcoins per day in the past few weeks.
Consequently, Bitcoin price is expected to continue rallying further in the coming quarters, with most analysts forecasting a six-figure by the end of this year.
With this perspective in mind, Bitcoin miners from all over the world are well positioned for a profitable period in the coming months amid the confirmed crypto super cycle. The fact that Bitcoin price has rallied above its prior all-time high (ATH) before the upcoming halving is an indication this bull cycle will be enormous by all standards.
Market Check
The total cryptocurrency market capitalization rallied 4.2 percent in the past 24 hours to about $2.8 trillion. More investors have increased their portfolios’ exposure to crypto assets amid the global geopolitical crisis and rising inflation.
Global markets are waiting for today’s US CPI (Consumer Price Index) data, which will show the general direction of inflation.
Despite the Fed’s Chair recently signaling imminent interest rate cuts this year, JPMorgan Chase & Co (NYSE: JPM) CEO Jamie Dimon stated that the prospects of a recession in the United States are not off the table.