According to reports, Bitcoin (BTC) miners are finally reaping the rewards of the cryptocurrency’s soaring prices. Jameson Lopp, cofounder of Bitcoin Self-custody Platform Casa, shared data on Dec. 23 indicating that the transaction fees earned by BTC miners each day in 2023 will average about $2 million, representing a 400% increase year-over-year. Lopp also shared that BTC miners will earn more than $10 billion by 2023, although he clarified that this assumes the miners immediately exchange their coins into fiat currency, which may not be the case.
A recent report from Messari indicated that BTC mining attracted significant investment in venture capital in November. The report revealed that 90% of the 98 crypto-related transactions made last month, worth $1.75 billion each, went to Bitcoin miners.
Good news for the sector didn’t end there. Crypto.news has previously reported that Bitcoin block rewards earned by miners topped $44 million, despite a mining difficulty increase of 3.55%. This jump in mining difficulty was due to the Bitcoin network’s hashing rate increasing by 343% in just one cycle.
These escalating sales revenues are crucial in reducing the pressure of selling Bitcoin. This reduced selling pressure could help to strike a better balance between the supply and demand on the market, potentially driving Bitcoin’s price upwards – especially when coupled with the anticipated approval of spot Bitcoin ETFs. Market watchers have made numerous predictions about Bitcoin’s price in 2024, with some claiming it could go as high as $160,000.