Bitcoin difficulty plummeted, but why did miners' income increase by 50% in 4 days?

Data shows that after the network experienced the largest ever decrease in difficulty, Bitcoin miners’ income has soared. According to data from blockchain monitoring resources, the daily growth rate of Bitcoin miners’ income has basically exceeded 50%.

Bitcoin mining is becoming more and more interesting?
Bitcoin mining is currently in a unique state of flux — with about half of the hashrate offline as miners relocate from the country, and more importantly, how quickly those miners will be able to get back online remains unknown.
At the same time, for those Bitcoin miners mining in overseas markets, it means that half of their competitors disappeared overnight. The result is undoubtedly: the profitability of miners who continue to maintain mining operations has increased significantly.
If we compare the Bitcoin miner revenue data from the past few weeks, the scale of the change is obvious. On July 2, the day before the Bitcoin mining difficulty adjustment, Bitcoin miners earned about $20.7 million in daily mining revenue. A day later, this indicator reached $29.3 million, and on Tuesday this week it reached $31.9 million.

Above: Bitcoin miner income chart. Source: Blockchain

These are all “very interesting dynamics,” blockchain analytics firm Glassnode wrote in its latest analysis:
In April, Bitcoin was trading between $50,000 and $60,000, and the hashrate of the entire network peaked, with miners earning roughly $50 million to $60 million a day. Now, while the price of Bitcoin has fallen by half, miners who remain in operation are more likely to be profitable, as an estimated 38-49% of competitors have gone offline (at least in the short term). The latest data shows that Bitcoin miners now earn roughly $25 million to $30 million a day, but with fewer miners continuing to mine online and no change in the amount of BTC produced each day, there are fewer competitors to share the spoils. According to the analysis, the profitability of Bitcoin miners who continue to operate has nearly tripled, comparable to the peak of Bitcoin prices in April.
While the Bitcoin network is now issuing the same amount of coins as usual, we are now in a situation where half of the miners are doubling their network revenue, while the other half are earning essentially nothing on the network.”

Above: Annotated chart of Bitcoin mining income distribution. Source: Glassnode

For active miners, profitability has returned to levels seen when BTC/USD was trading at $55,000-60,000.
Record-breaking block time
Glassnode analysis shows that the average block time hit an all-time high in the past week.
Last week, the average block time based on the 24-hour average soared to 1,958 seconds (32.6 minutes), 226% more than the target block time of about 600 seconds. However, this situation only occurred briefly on June 28, after which the average block time of the entire network quickly returned to around 800 to 900 seconds.

Above: Annotated chart of Bitcoin’s average block interval. Source: Glassnode

At the computing power level, if the computing power market recovers quickly, it means that the risk of Bitcoin miners selling BTC on a large scale will be reduced, because miners quickly find new sites to rebuild their mining operations, sell hardware, or use other channels to pay for their operating costs, which may allow Bitcoin to recover and return to its previous highs. If the computing power market takes a long time to recover, it means that the costs or debts borne by Bitcoin miners will increase, which in turn creates a higher possibility for miners to sell Bitcoin. They may have to sell their Bitcoin holdings in order to obtain more legal currency to pay for their operating costs.
It is undeniable that some Bitcoin miners will sell their inventory of BTC due to the cost of relocating mining machines, and they will not be able to obtain block rewards and fee income due to the inability to mine new BTC. At the same time, some other miners have harvested more Bitcoin - despite the price drop of more than 50%, the profitability of these miners continues.
"This situation is worthy of great attention!" Glassnode suggested. (Golden Finance)