Ready for the big spring mine? – Miners are smiling again after Bitcoin’s recent rise. After a particularly complicated year 2022 for the industry, mining could well pick up again at the start of 2023. Decryption.
Return of earnings for miners in January 2023
To say all was not well for Bitcoin miners in 2022 is an understatement. The giant Core Scientific has been narrowly saved from bankruptcy thanks to generous donations from the mastodon BlackRock. On his side, Argo Blockchain had to resign to separate from its largest holding, Helios. This was sold to Galaxy Digital. Many fundraising miners have also been forced to sell their precious BTC at the worst possible time. During the low point of the market around $16,000 at the end of the year. In short, the industry has seen all the colors in recent months, but especially red. Survivors can therefore fully appreciate the return of a little green at the start of the year.
During this January rally, the income of miners of Bitcoin went from $16 million per day on January 1 at almost 25 millions the last days. On the eve of Christmas, last December 24, these revenues reached their low point, briefly falling below 10 million dollars.
After flying away at nearly $80 million as of mid-April 2021, miner earnings had barely topped 20 million since last June. Is this the first glimmer of a burst of bulls in a long-term underlying trend? Only the future can tell.
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Bitcoin’s hashrate has health
In the meantime, the Bitcoin network continues to be popular. After a first crack in November then a second caused by a winter storm which fell on the United States in the middle of December, the hashrate soars to new heights. The hashrate being representative of the computing power deployed on the Bitcoin network.
These cracks may have been the visible signs of the capitulation long awaited minors. The one that usually serves as a preamble to a lasting resumption of the bullish rally. In all cases, the hashrate therefore rose in the space of a month from 222 PE/s to 295 PE/s. A hell of a performance.
Beyond the bear market which precipitated prices into the depths of the abyss, the hashrate meanwhile only briefly plunged. It has also continued to grow throughout 2022, a sign of growing adoption of technology. Beginnings maybe of an inevitable democratization for Bitcoin.
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