Bitcoin miners are experiencing significant gains, thanks to a surge in transaction fees that have reached their highest levels since April 2021, primarily driven by the increasing demand for Ordinals inscriptions.
The positive momentum in the market throughout this year has served as a valuable recovery for miners, compensating for the challenges faced in the unfavorable conditions of 2022.
As such, miners appear to have cashed in on this remarkable rally this month.
Bitcoin Miners’ $129 Million Sale Sparks Speculation
Bitcoin miners have executed a substantial sell-off, disposing of more than 3,000 BTC in the past 24 hours, equivalent to approximately $129 million. According to the latest CryptoQuant data shared by analyst Ali Martinez, there has been a continuous decline in the reserves of Bitcoin miners since the start of December.
This significant divestment by miners has the potential to exert an impact on the price dynamics of Bitcoin. Such large-scale transactions within a short timeframe often draw attention from market participants and analysts, leading to speculation about the potential impact on the broader market.
Currently, Bitcoin miners hold approximately 1,834,447 BTC, with the latest sale of 3,000 BTC.
In a notable move, #Bitcoin miners have sold over 3,000 #BTC in just the last 24 hours, amounting to approximately $129 million. This substantial sell-off could influence the price of $BTC. pic.twitter.com/mUl4ebDwpm
— Ali (@ali_charts) December 28, 2023
There is no doubt that Bitcoin miners are riding the wave of the new BRC-20 token standard that pushed Bitcoin transaction fees through the roof. Miners across the network are benefiting from this trend by accumulating additional profits in the form of satoshis.
Earlier this month, CryptoPotato reported that three prominent Bitcoin mining pools, constituting the majority of the market share, attracted nearly one-third of their profits solely from transaction fees.
Foundry USA, commanding 26% of the market, raked in an average of 3.23 BTC per block in transaction fees during this period. Simultaneously, its major competitor, Antpool, based in Beijing, China, amassed an average of 3.26 BTC per block in fees.
Surge in Transaction Revenue
Bitcoin miners have accumulated an average daily transaction fee revenue of $2 million in 2023, marking a substantial 400% surge compared to the previous year’s averages. Coin Metrics data previously revealed that the total revenue generated by Bitcoin miners in 2023 exceeded $10 billion, contributing to a combined sum of $57 billion amassed over the past 14 years.
December witnessed a peak in miners’ total daily revenue, coupled with block rewards and transaction fee revenues, reaching an annual high of $64 million. Notably, since the onset of December, daily mining activity revenue has consistently stayed above $33.85 million, indicating a lucrative profit trend for miners in the fourth quarter of 2023.
Additionally, Coin Metrics disclosed that quarterly mining revenues in 2023 surpassed $2 billion across the last three, with transaction fees collected by miners surging over $180 million in both Q2 and Q4.
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