Bullish Signal for Miners as Bitcoin Hashprice Surges to One-Month High.

Bitcoin Miners Benefit from Rising Hashprice as BTC Price and Transaction Fees Increase

Bitcoin miners are seeing a positive shift in profitability as Hashprice, a key metric for assessing mining returns, reaches its highest levels in a month. This increase is fueled by rising Bitcoin (BTC) prices and growing transaction fees on the network.

Hashprice, developed by Luxor, measures the daily income miners can earn from contributing to Bitcoin’s hash power, expressed as the expected value of 1 TH/s of hashing power per day. According to Glassnode, Hashprice is currently above $62 PH/s, marking its highest level since mid-December.

The primary drivers of this rise are Bitcoin’s surge to over $100,000, a 56% increase over the past three months, and a noticeable uptick in miner fees, which have reached approximately 12 BTC per day, the highest in over a month. This increase in fees is largely attributed to higher inscription activity within the Bitcoin network.

Following the April 2024 halving—which slashed mining rewards by half—the hashprice dropped from around $115 PH/s. This created challenging conditions for miners, with many seeing slower revenue growth throughout the year. For much of 2024, mining revenue remained below the 365-day simple moving average (SMA). However, November 2024 marked a recovery, with mining revenues now above the SMA, signaling a potential uptrend.

While hashrate has recently hit all-time highs, increasing the network difficulty and making it harder for miners to earn rewards, the combined effect of high Bitcoin prices and rising transaction fees has provided miners with some relief.

Andre Dragosch, European Head of Research at Bitwise, commented to CoinDesk that miners are in a more favorable position compared to last year.

“We’ve seen a slight decrease in the network’s hashrate since its peak in early January, but Bitcoin’s price increase and the uptick in transaction counts have contributed to the recovery in hashprice,” Dragosch explained. “This should incentivize miners to continue scaling their hashrates further.”

Dragosch also pointed out that Bitcoin miners appear well-capitalized, with continued increases in miner holdings since the start of the year. This suggests that miners are selling less Bitcoin than they are producing daily, reflecting a more cautious approach and stronger financial position.

With Bitcoin prices holding strong and transaction fees providing support, miners are positioned for continued growth and profitability in the coming months.

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