Data shows following a period of struggle, Bitcoin mining stocks have once again started rising as the price of the crypto also rallies.
Bitcoin Mining Stocks Go Up As Miner Revenues Observe Increase
As per the latest weekly report from Arcane Research, the 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 also meant that stocks of Bitcoin mining companies took a hit as well.
There were mainly two reasons behind this downtrend. The first was the fact that the price of BTC was also going down during this period. As miners earn their profits in the crypto, a decline would mean the value of their rewards also decreases.
The other reason was an increase in the hashrate. The “hashrate” is an indicator that measures the total amount of computing power currently connected to the Bitcoin network.
As the value of this metric goes up, the mining difficulty also rises due to an increase in competition. This again leads to fewer profits for miners.
Related Reading |Â Data Shows Bitfinex Hack Woke Up Largest Ever 5yr+ Bitcoin Supply
The below chart shows the trend in the BTC hashrate over the past year:
Looks like the indicator has been increasing for a while now | Source: The Arcane Research Weekly Update - Week 5
As you can see in the above graph, the Bitcoin hashrate has been going up for some time now and is currently around all-time high values.
This has resulted in lower profits for miners, and hence lesser values for mining stocks. However, the price of the crypto has finally shown some sharp uptrend over the past week, leading to a 6% increase in miner revenues over the this period.
Related Reading | Mexico’s Third Wealthiest Man Says Bitcoin Is A Better Alternative To Fiat Money – Here’s Why
This revenue increase has also lead to a rise in the values 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%.
BTC Price
At the time of writing, Bitcoin’s price floats around $43.7k, up 13% in the last seven days. Over the past month, the crypto has increased 5% in value.
The below chart shows the trend in the price of BTC over the last five days.
BTC's price seems to have enjoyed some sharp uptrend over the past few days | Source: BTCUSD on TradingView
Yesterday, the price of Bitcoin briefly surged above the $45k level, but it wasn’t long until it came back down to the current values.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
