Bitcoin miners noticed substantial shifts of their income throughout 2024, a pivotal yr marked by the community’s fourth halving occasion. As bitcoin’s block reward dropped from 6.25 BTC to three.125 BTC at block 840,000 in mid-April, the dynamics of mining profitability shifted dramatically, influencing income traits all year long.
From Peaks to Valleys: The Dramatic Income Shifts for Bitcoin Miners in 2024
The yr started on a powerful word for bitcoin (BTC) miners. Metrics collected from theblock.co’s mining information reveals January’s complete mining income reached $1.35 billion, with block subsidies contributing $1.21 billion. February noticed a modest rise to $1.39 billion, and March peaked pre-halving at $2.01 billion in complete income, $1.93 billion of which got here from block rewards. These robust earnings showcased the importance of block subsidies and hashprice previous to the halving occasion at block peak 840,000.
Following April’s halving, miners skilled a pointy income decline. April’s complete income was all the way down to $1.79 billion, as subsidies fell to $1.5 billion, reflecting the decreased block reward. By Might, income dropped beneath $1 billion for the primary time in 2024, totaling $964.24 million, with rewards contributing $899.39 million. This downward development continued by August, which marked the second-lowest income month this yr at $851.36 million.
September introduced additional challenges, with bitcoin miners’ complete income slipping to $815.7 million, the bottom level for block subsidies at $801.84 million. Nevertheless, miners noticed a gradual restoration within the fourth quarter. October’s income climbed to $1.02 billion, and November additionally surpassed the $1 billion mark at $1.21 billion, spurred by bitcoin’s worth resurgence following the U.S. election.
Bitcoin’s complete hashrate in 2024.
December capped the yr with $1.41 billion in income, pushed by bitcoin’s worth exceeding $108,000 in mid-December. December’s estimate might be a contact larger too as Dec. 31, 2024, is just not fairly completed. Whereas revenues improved considerably within the ultimate quarter, they remained beneath pre-halving ranges. The subsidy portion of December’s income, $1.37 billion, highlighted the enduring significance of present block rewards regardless of the decrease charge.
The timeline reveals the halving occasion showcased the affect of decreased block rewards on miner earnings whereas highlighting the resilience of the sector. Whereas income shifted immensely this yr, miners nonetheless managed to interrupt information when it comes to computational energy. The hashrate managed to climb over 805 exahash per second (EH/s) this month based on the seven-day easy shifting common (SMA).
Furthermore, Bitcoin’s community issue climbed sky-high this yr as effectively rising to an enormous 109.78 trillion after the issue change final night time. As bitcoin’s worth rallied late within the yr, miners demonstrated adaptability in navigating new financial realities. Whether or not future years deliver comparable volatility will rely largely on market traits and technological developments within the mining ecosystem.
