Data shows following a period of struggle, Bitcoin mining stocks have again started rising as the price of the crypto likewise rallies.
Bitcoin Mining Stocks Go Up As Miner Revenues Observe Increase
As per the latest weekly report from Arcane Research, the Bitcoin (BTC) miner revenues have seen a rise of 6% over the past week, leading to an uptrend in mining stocks.
Since a few months back, miner revenues have been on a decline, until now. This over again meant which stocks of Bitcoin mining companies took a hit as well.
There were mainly two reasons behind this downtrend. The first was the evidence which the price of Bitcoin (BTC) was also going down during this period. As miners earn their profits in the crypto, a decline would mean the cost of their rewards also plunges.
The other reason was an increase in the hashprice. The “hashrate” is an indicator which measures the total amount of computing power directly combined to the Bitcoin network.
As the price of this metric goes up, the mining difficulty also rises as a result of an increase in competition. This still leads to fewer profits for miners.
The below chart shows the trend in the Bitcoin (BTC) hashrate over the past year:
Looks like the indicator has been spiraling for a while now | Source: The Arcane Research Weekly Update - Week 5
As you can see in the atop graph, the Bitcoin hashrate has been going up for some time now and is presently around all-time high costs.
This has resulted in lower profits for miners, and hence lesser costs for mining stocks. Yet, the rate of the crypto has ultimately shown some sharp uptrend over the past week, leading to a 6% increase in miner revenues over the this period.
This revenue increase has still lead to a rise in the prices of mining stocks. Since Friday, shares of the major mining companies like MARA, CORZ, and RIOT have seen an increase of around an average of 20%.
Bitcoin (BTC) Price
At the time of writing, Bitcoin’s price floats around $43.7k, up 13% in the continue seven days. Over the past month, the crypto has accelerated 5% in rate.
The below chart shows the trend in the price of Bitcoin (BTC) over the carry on five days.
Bitcoin (BTC)'s price seems to have enjoyed some sharp uptrend over the past few days | Source: Bitcoin (BTC)USD on TradingView
Yesterday, the price of Bitcoin briefly surged atop the $45k level, but it wasn’t lengthy until it came back down to the current prices.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research