NEW YORK - The Bitcoin mining industry has reached a new annual revenue peak, according to data from Blockchain.com. On November 9, 2023, miners earned $42,386,514.038 in a single day as the price of Bitcoin soared above $37,000. This surge is linked to the market's anticipation of the U.S. Securities and Exchange Commission (SEC) potentially approving a spot Bitcoin ETF, a move that investors have long awaited.
Lane Kasselman, a notable figure in the cryptocurrency space, pointed to increased network congestion and higher transaction fees as key factors contributing to this record revenue figure. This congestion often occurs when there is heightened activity on the Bitcoin network, leading to more competition among users to have their transactions processed, which in turn drives up the fees they are willing to pay.
This new peak surpasses the previous high seen in May 2023, when Bitcoin mining revenue hit $41,744,197.067. The demand for Ordinals, which are similar to non-fungible tokens (NFTs), was cited as the driving force behind the revenue spike at that time.
The prospect of simultaneous approval of up to 12 Bitcoin ETFs has added to the optimistic sentiment among investors and miners alike. Such ETFs would provide a regulated and more accessible way for retail and institutional investors to gain exposure to Bitcoin without directly buying or holding the cryptocurrency.
This development is particularly significant as it reflects the growing mainstream acceptance of Bitcoin and could lead to increased investment and usage. However, the SEC's decision on the spot Bitcoin ETFs remains pending, and its impact on both the price of Bitcoin and mining revenues will be closely watched by stakeholders in the cryptocurrency market.
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