Despite 36% Plummet, BTC Miners Generated $1.4 Billion Revenue in May
May 2021 was a challenging month for Bitcoin. The leading digital currency experienced a more than 50% correction after reaching its record high in April. BTC miners obtained reduced revenue after the crash and increased regulation concerns.
Finfold data shows that BTC miners generated $145 bn in May, a 15.01% drop from $1.7 billion in April. The revenue had to drop slightly since BTC witnessed wild corrections of around 36% in May. From March to April, the revenue grew by 2.5% hitting $1.7 billion from $1.75 billion.
April 15th had the highest daily BTC mining revenue ($77 million) in the past three months. On the other side, May 29th had the lowest profits of $26 million.
Mining Revenue Drop Amid BTC Environmental Concerns
Market analysts predicted mining revenue to plunge last month as crypto criticizers focused on BTC’s energy usage. For instance, Elon Musk attacked Bitcoin due to its ‘insane’ electricity usage that forced the car manufacturer to suspend BTC transactions. Other countries such as China followed with clampdowns targeting Bitcoin miners.
Keep in mind that Tesla purchased Bitcoin worth $1.5 billion early this year. The move to ban the coin’s activity by the car firm saw Bitcoin declining drastically. Musk, an icon in the virtual markets, announced that Tesla is looking for an environ-friendly crypto option. Analysts expect the move to turn away interested institutional investors. April and March saw increased BTC revenue as the world’s favorite coin surged due to institutional interest.
Keep in mind that the BTC slump resulted from stiffer laws in most regions. For instance, Inner Mongolia proposed new regulations to monitor the crypto market.
Although different factors contributed to BTC decline, traders can expect to see the effects in June. However, countries like North America are looking for ways to utilize renewable energy in mining Bitcoin.
BTC Mining Revenues in Future
At the moment, BTC mining revenue seems encouraging, given that the market has seen profitability decline in recent months. Unfortunately, the BTC industry might witness decreased mining revenue since the regulators target large-scale crypto miners.
Nevertheless, BTC can attract many institutions with renewable energy solutions. That will increase mining revenue and the coin’s value.
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