Bitcoin Miners Earning $1 Million Every Hour; MRI Went ‘Nuts’ As A Big Seller Got Active
Bitcoin price is on the rise and average transaction fees on the network are also strong.
During the late hours of Monday or early hours of Tuesday, a surge was witnessed in Bitcoin transaction value.
It was a few mega blocks that caused the 7-day rolling inventory to spike by $2 billion which was “unusual,” noted Charlie Morris of crypto data provider ByteTree.
Long term inventories, coins that are never “spent” by miners, also dropped by 10k BTC or $270 million at the same time, which relates to mining treasury activities.
On top of this, ByteTree's Miners' Rolling Inventory (MRI) went nuts as well, at above 1,155%.
When MRI goes above 100, it means miners are selling their Bitcoin. Over the recent weeks, this has been keeping light while the BTC price rallied strongly to a new ATH at around $28,200 on Sunday.
But the data reflected that a big seller was certainly active. Morris said,
“I normally associate miner selling with market strength in the consolidation periods, but during the ATH surges, that can flip. It just did.”
However, the MRI soon normalized and is currently at 128.2.
This slug of miner selling isn’t necessarily bearish as MRI was normalized right after and miners sell every day. Additionally, miners “tend to sell more into a strong market than a weak one as they don’t want to impact price.”
Bitcoin miners are having a great time in the current bull rally. Not only is the price of the world's largest digital asset going up, up and further up but the average transaction fees on the largest network is also above $8, a combination of which has miners currently earning $1 million per hour. Glasnode stated,
“This is an increase of 185% since the halving. The last time miner revenue was this high, was in July 2019. Note that block rewards were twice as high than today.”