Institutional Bitcoin Wallets Hits Record High; Mining Revenue Dips

Bitcoin (BTC) price is struggling to maintain the psychological level at $29,000, let alone breaking the crucial price point. Since mid-August 2023, BTC price broke the recent support levels and traded around $25,000. Despite the trading price of flagship cryptocurrency struggling, the crypto’s institutional interest was an uptick. 

Glassnode data suggests the number of crypto wallets with more than 10 Bitcoin (BTC) is at record high levels. It attained the highest point of 157,426 wallets keeping at least 10 Bitcoin while the cryptocurrency was trading at $25,776 on September 5, 2023. However, at press time, it saw a slight decline and the number slid to 157,390 wallets. 

The numbers are historically high as the last peak point was in September 2019 when the wallets hit a high of 157,275. 

Institutional Bitcoin Wallets Hits Record High; Mining Revenue Dips
Source: Glassnode

The metric of 10+ BTC cryptocurrency wallet is the only one that witnessed consistent growth in the past months. 

Bitcoin price has also been erratic in the last month. It saw constant ups and downs since mid-August till date. The price range varied from $25,000 to $28,000, where it refrained from attaining the $29,000 price level. 

BTC price saw a steep uptick during August end when the Bitcoin fund manager Grayscale won the legal fight against the Securities and Exchange Commission (SEC). 

Currently, Bitcoin is trading at $25,750 after losing over 5% in the last seven days. 

Bitcoin Mining Revenue Drops Amid Security Increase

On one hand, the institutional interest in Bitcoin (BTC) is growing, and the mining revenue is in bleak condition as it witnesses declines. Ironically, the issue of mining revenue drop arises amid the increasing Bitcoin network security. 

For context, the revenue or “hash price” dips at levels similar to November 2022 when the abrupt fall of crypto exchange FTX shook the broader crypto market. 

At the time, when BTC price and mining revenue were dropping, the hash rate—signifies the network security—hit the recent high at 414 Exahashes per second (EH/s). data shows the hash rate saw an increase of 54% since the start of 2023 while it is 80% up in the year-over-year time frame. 

A strong hash rate is usually a sign of a secure and robust network. However, even with this level of security, miners who play a crucial role in maintaining the Bitcoin ecosystem are currently facing financial challenges. Their earnings fell to the levels seen during the November drop in Bitcoin’s market value, which was around $16,500. Mining revenue saw a significant rise with the emergence of Bitcoin Ordinals and was doing completely fine following the increased activities over the network.

Steve Anderrson
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