The Bitcoin mining industry saw a strong recovery in the last few weeks after China’s crackdown on regional crypto miners. According to the latest on-chain analysis report published by Glassnode, the mining rate of the world’s largest cryptocurrency jumped 42% in the last 6 weeks.
Glassnode also highlighted a sharp increase in the Bitcoin mining revenues. USD revenues reached the level of $380k per Exahash, the highest level since July 2019. The latest jump in revenues and hash rate shows that the operational Bitcoin miners are enjoying exceptional profits.
“The Bitcoin mining market continues to recover after half of the hash-power came offline during the Great Migration out of China. The 14-day median hash-rate has recovered to 128 EH/s, which is approximately 29% below the all-time-high, and reflects a 42% recovery from the July lows. The increase in hash-rate is likely a combination of previously obsolete hardware finding a second lease on life, and miners in China successfully relocating, re-establishing, or re-homing their hardware and operations,” Glassnode mentioned.
Earlier this week, CoinShares published its latest digital asset fund flows report and highlighted a significant jump in Bitcoin’s institutional demand. BTC investment products saw $59 million worth of inflows last week.
Bitcoin Transaction Size
One of the key indicators of the overall performance of Bitcoin’s network activity is its transaction size. BTC’s average USD transaction size in 2021 has increased significantly.
“The average USD transaction size of Bitcoin in the 2019-20 bear market was typically between $6k to $8k. This period was largely dominated by retail and early investment fund participants. The 2020-21 bull market saw average transaction sizes increase significantly into a peak of $58.6k during the May sell-off. This has largely cooled off from July onwards, with the current average transaction size between $30k and $36k. Relative to the 2019-20 period, this represents a significant 370% increase, despite the recent correction, reflecting continued and sticky institutional-sized interest,” Glassnode added.
The world’s largest cryptocurrency is currently trading above the $50,000 price level.