Data shows that Bitcoin mining difficulty has increased, causing miners’ daily earnings to drop 14% over the past week. The crypto bloodbath has also impacted their income.
Daily Bitcoin Mining Revenue Dips Below $ 40 Million, Down 14% From Last Week
According to the latest report from Arcane Research, Bitcoin mining difficulty increased further just before last week.
While this increase in difficulty of over 3% contributed to the drop in miners’ income, another factor was this week’s crypto bloodbath.
This “bloodbath” refers to the crash caused by China’s announcement that crypto transactions are illegal in the country.
Here is a table showing all the relevant data relating to the drop in miners’ incomes during the week:
The BTC mining revenue change in the past week | Source: Arcane Research
As you can see in the table above, the daily earnings of Bitcoin miners fell almost 14% that week. They are now around $ 39 million, down more than $ 6 million over the period.
Related reading | President Shows El Salvador’s Bitcoin Volcano Mining Platform ‘First Steps’
These income levels are the lowest since the beginning of August. Daily transaction fees also fell more than 17% during the week.
The 3% mining difficulty adjustment occurred on September 21, and the Bitcoin block production rate is now around 6 blocks per hour.
BTC crash due to China’s crypto ban impacts mining revenues
As already mentioned before, the increase in difficulty was not the only factor behind the decrease in income for Bitcoin miners.
The price of BTC plummeted by $ 4,000 after China’s declaration of the crypto ban, with the coin’s price rising from $ 45,000 to $ 41,000.
This drop in the price of Bitcoin and the difficulty of mining, combined with the 17% drop in transactions, caused the miners’ incomes to drop.
Related reading | Diamond Hands: 80% of Bitcoin’s Circulating Supply Now Belongs to Long-Term Holders
Interestingly enough, while the number of deals has dropped significantly, the average deal size has instead seen a 10% increase.
The Bitcoin relief network has seen a sharp increase in activity during the period, so it is possible that smaller transactions have gone through there, while larger ones are still on-chain.
As of this writing, the price of Bitcoin is floating around $ 43.3k, down 0.5% over the past seven days. Over the past month, the crypto has lost 9.6% in value.
The chart below shows the coin’s price trend over the past five days:
BTC's price keeps fluctuating wildly over the last few days | Source: BTCUSD on TradingView
Over the past few months, Bitcoin has lost all volatility and trading volume as the network has gone relatively silent. But that has finally changed now, as both measures seem to have made a comeback.