According to Glassnode’s latest on-chain data, Bitcoin mining revenue has increased by 57 percent, reaching levels last seen in mid-2020.
Bitcoin experienced a significant drop in mining volume following a clampdown on crypto operations by the Chinese government in May. Many miners were forced to leave the Asian country, with the majority of the hash rate moving to Europe and the United States.
Ahead of the clampdown that began in May, Bitcoin’s mining power peaked at 180 EH/s before falling by more than 50%. However, the hash rate has recorded an uptick of about 25%, with the mining power currently at 112.5 EH/s.
The primary factor responsible for the revenue increase is Bitcoin’s mining difficulty. Recall that in July, the network’s mining difficulty crashed by 28%, the implication being that mining Bitcoin became relatively more profitable.
Following the May 2020 halving, the income of Bitcoin miners was reduced from 9.5 BTC per EH to 5.6 BTC per EH. However, in the last two months, the net balance position of mining accounts has increased to +5,000 BTC per month.