Bitcoin miners have experienced a significant increase in transaction revenue, with a reported 400% spike in 2023. According to Jameson Lopp, co-founder of Bitcoin self-custody platform Casa, miners collected an average of $2 million per day in transaction fees this year. This surge in revenue is attributed to the soaring prices of Bitcoin. Lopp also mentioned that BTC miners earned over $10 billion in 2023, although this figure assumes instant conversion to fiat currency, which may not be entirely accurate as miners tend to hold onto their coins.
In November, BTC miners attracted substantial venture capital investment, with 90% of the 98 crypto-related deals valued at $1.75 billion going to Bitcoin miners. This positive trend in the sector continued as Bitcoin miners earned more than $44 million in block rewards, despite a 3.55% increase in mining difficulty. The surge in mining difficulty was a result of Bitcoin’s hash rate reaching its fourth-highest adjustment this year, reflecting a 343% surge in this cycle.
The increase in mining revenue is seen as crucial in offsetting selling pressure on Bitcoin and potentially driving its price upward. Market analysts anticipate a balance between supply and demand in the market, especially with the expected approval of spot Bitcoin ETFs. These developments have led to various predictions about Bitcoin’s price in 2024, with some suggesting it could reach as high as $160,000.
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