- The fees generated on the Bitcoin network rose and miners started seeing profits.
- Selling pressure on miners eased while the holder MVRV ratio continued to rise.
Despite Bitcoin [BTC] The condition of miners, which has rallied in recent months, remained volatile. However, the situation of miners can change quickly. The introduction of Ordinals and Inscriptions has seen a surge in activity on the Bitcoin network, leading to a spike in fees collected on the network.
Read the Bitcoin price forecast for 2023-2024
Hopeful updates for miners
According to information from Token Terminal, the Bitcoin network is currently experiencing a significant increase in transaction fees, the highest in more than a year. The data showed that fees generated rose to $3.2 million, a remarkable 64% increase in the past 24 hours.
Source: token terminal
As a result, the momentum of mining revenues relative to production costs began to increase.
The Miner Revenue Momentum (MRM) is a measure of the combined profitability of miners at a given point in time, relative to a long-term baseline. This assessment provides valuable insights into the state of the mining industry as it can indicate whether revenue multiples are improving or deteriorating compared to the annual average.
An MRM greater than 0 suggests that the mining sector is experiencing an increase in revenue multiples, indicating improved profitability for miners. Conversely, an MRM of less than 0 suggests that the mining sector is experiencing a decline in revenue multiples, indicating less profitability for miners.
At the time of writing, the MRM turned positive.
Source: glassnode
Dive into miner pools
As miners’ profits begin to rise, the general selling pressure on them will begin to ease, which will positively impact BTC prices.
At the time of writing, a large majority of mining was done by various mining pools. Mining was dominated by Foundry USA, which made up 28.5% of the total mining share. Followed by AntPool and F2Pool, accounting for 23.2% and 13.5% of the market share respectively.
Source: BTC.com
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While miners experienced less selling pressure, holders did not have the same experience.
Bitcoin’s MVRV ratio has risen significantly in recent months. This indicated that many addresses with BTC were profitable. As the profitability of the addresses grows, so does the incentive to sell.
Source: Sentiment
