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Bitcoin mining revenue hits yearly high, after return to pre-halving levels

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Key on-chain metrics such as Bitcoin mining revenues have returned to pre-halving levels according to recent research.

Data from analytics provider, Glassnode, suggests that revenue from Bitcoin mining is now back at the same levels it was as when block rewards were double what they are now.

When the halving took place in mid-May, BTC prices were around $9,000. On November 18 they had doubled to $18,000 which suggests a correlation as miners need to sell enough of the asset to cover their expenses while remaining in profit. Higher prices mean greater profits.

Blockchain.com, which tracks the total value of coinbase block rewards and transaction fees paid to miners confirms the findings.

The daily revenue figure, which includes block rewards and transaction fees, for Nov. 18 was $21.2 million, its highest for a year. The previous peak was on May 6 when it reached $20.6 million. Following the halving event, which dropped block rewards from 12.5 BTC to 6.25 BTC, revenue plummeted to just over $7 million per day.

Mining revenue saw an earlier slump on March 18 this year following the pandemic-induced crypto market crash which wiped 45% off the price of Bitcoin in less than a week. When mining revenue falls steeply, over-leveraged miners can begin capitulating due to unfavorable market conditions.

The opposite appears to be happening at the moment as prices approach their all-time high.

Another factor indicating that the network is healthy and miners are happy is the hash rate, which is now just 10% away from its highest ever level.

Following the end of the rainy season in China, where the majority of Bitcoin mining takes place, rigs were powered down in preparation for relocation as cheap hydroelectric power dried up. This resulted in a seasonal hash rate slump of 37%, to below 98 Exahashes per second.

Since then, hash rate — which many believe is correlated to prices — has recovered to 143.4 EH/s which is not far off its mid-October peak of 157.6 EH/s according to Bitinfocharts.com.

The current mining revenue figures and hash rate recovery bodes well for the continuation of the bull market which may just take Bitcoin prices to a new all-time high before the end of the year.





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Crypto derivatives exchange Bybit launches quarterly Bitcoin futures

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Bybit announced Thursday that it will roll out a BTC/USD quarterly futures contract on Nov. 30. Two contracts will be offered at launch — BTCUSD1225, settling on Dec. 25, 2020, and BTCUSD0326, which will be settled on March 26, 2021.

Bybit says the new futures contracts have no funding fee, which means traders can hold the position without charge as long as the contracts are still in effect.

Like traditional futures contracts, Bitcoin (BTC) futures allow traders to buy and sell the digital currency at a predetermined price at a specific future date.

Bybit isn’t the first crypto trading platform to offer quarterly Bitcoin futures. Binance, a Malta-based exchange with the highest daily volume, launched its quarterly BTC futures contracts in January.

Demand for crypto derivatives is on the rise as more institutional investors come into the fold. Recent data from Wilshire Phoenix suggest that CME Bitcoin futures are having a significant impact on the digital currency’s price.

The report claimed:

“CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation.”

Launched in December 2017, CME Bitcoin futures are now the second-largest BTC futures exchange by open interest. The top spot belongs to OKEx, according to data analytics firm Skew.

Institutions are increasingly viewing Bitcoin as a long-term investment opportunity. The likes of Paul Tudor Jones and Stanley Druckenmiller have also thrown their weight behind the flagship digital currency, potentially signaling a shift in institutional thinking.