Bitcoin mining revenue has returned to pre-halving levels, hitting a new high this year

Global bitcoin mining revenues now exceed $20 million per day, the highest level so far this year.

According to the latest data from Glassnode , key on-chain indicators such as Bitcoin (BTC) mining revenue have returned to pre-halving levels , with miners now earning double the amount they did just after the halving.

When the halving took place in mid-May, the BTC price was around $9,000. On November 18, the price doubled to $18,000. This shows that production costs and prices are currently correlated, as miners need to sell enough assets to cover their expenses while their operations remain profitable. A higher Bitcoin price means greater profits for miners.

Blockchain.com, which tracks the total value of block rewards based on the number of coins and transaction fees paid to miners, confirmed the findings.

The daily revenue figure (including block rewards and transaction fees) on November 18 was $21.2 million, the highest level in a year. The previous peak was on May 6, reaching $20.6 million. Just after the halving event, when the block reward dropped from 12.5 BTC to 6.25 BTC, miners' daily revenue plummeted to just over $7 million.

Mining revenues experienced an earlier plunge on March 18 this year, following the COVID-19-induced crypto market crash, which caused the price of Bitcoin to fall 45% in less than a week. When mining revenues drop sharply, over-leveraged miners may begin to capitulate due to unfavorable market conditions.

With the price of Bitcoin now approaching its all-time high, the profitability of miners appears to be reversing.

Another factor that indicates that the network is healthy and miners are happy is the hash rate, which is currently just 10% below its peak level.

Following the end of the flood season in China, miners were forced to switch from Fengshui mining farms to dry mining farms in the process of power outages. This caused the seasonal hash rate to plummet by 37% to below 98 exahash per second.

Since then, the hash rate, which many believe is related to price, has recovered to 143.4 EH/s, not far off its peak of 157.6 EH/s in mid-October.

Current Bitcoin mining revenue figures and recovering hash rate levels suggest a continuation of the bull run, which could take Bitcoin prices to new all-time highs by the end of the year.