According to Farside's data, the Bitcoin mining industry has reached a major milestone, surpassing a market capitalization of $20 billion, currently at $20.6 billion.
This milestone highlights the growing importance of public miners in the Bitcoin ecosystem, contributing approximately 28% of the global hash rate. They are valued at about 1.55% of Bitcoin's current market capitalization of about $1.327 trillion.
Bitcoin Miner Market Capitalization Data: (Source: Farside)
Despite this milestone, many Bitcoin miners have faced challenges this year in terms of stock returns. Notably, CleanSpark stands out as an outlier, posting a significant 51% year-to-date increase. Interestingly, the WGMI Bitcoin Mining ETF has seen a 4% decline year-to-date.
Contrary to previous speculation, the introduction of the Bitcoin ETF did not negatively impact Bitcoin proxy stocks. This is evident in MicroStrategy's impressive 222% increase since its introduction.
As of January 11: WGMI VS MSTR: (Source: TradingView)
A key factor contributing to the bearish price action for miners is the impending Bitcoin halving event , which is expected to reduce the block reward from 6.25 to 3.125 BTC.
A key factor contributing to the bearish price action for miners is the impending Bitcoin Halving , which is expected to reduce the block reward from 6.25 to 3,125 BTC.
Despite a 50% increase in Bitcoin prices YTD, transaction fees for miners—an essential source of revenue—remained low, leading to a frenzy seen in early 2023. Watching closely Strict transaction fee levels will be mandatory to assess the future prospects of the mining industry.
Total transaction fees: (Source: Glassnode)
Bitcoin mining market cap after surpassing $20 billion as industry continues to grow amid challenges appeared first on CryptoSlate.
