• Bitcoin miner revenue took a substantial hit as the price failed to move north.
• Data from Bitinforcharts suggests that Bitcoin mining revenue dropped by over 50% since May 2022.
• The decline in miner revenue comes days after the network difficulty hit an all-time high of 55.62 trillion hashes while Bitcoin’s price was stuck at around $26k.
Bitcoin Miner Revenue Takes Hit
The world’s largest cryptocurrency, Bitcoin, has seen its hash rate and difficulty reach peaks recently, but its hash price has yet to recover. According to data from Bitinforcharts, miner revenue (hash price) has declined to levels not seen since November 2022 when FTX imploded – down by over 50% since the Ordinal-driven frenzy of May when the figure surged to $0.118 per terahash per second per day.
Correlation With Price and Transaction Volume
Hash price is positively correlated with changes to the price of bitcoin and transaction fee volume; meaning, the higher the bitcoin’s value or transaction volume, the higher miners’ dollar-valued rewards per TH/s will be. Conversely, it is negatively correlated with hash rate/mining difficulty adjustments.
Miner Revenue Drops To $0.058 Per Tera-Hash
At present, miner revenue has fallen to $0.058 per tera-hash per second per day according to Bitinforcharts – indicative of an ongoing downward deviation in the true value of Bitcoin as miners struggle amidst a stagnant market price hovering around $26k despite a network difficulty ATH of 55.62 trillion hashes reached just days ago.
Speaking To CryptoPotato
When speaking to CryptoPotato about this issue, a Bitfinex spokesperson stated that miners view current Bitcoin prices as demonstrating a downward deviation in its true value; such low rewards make it increasingly difficult for them to remain profitable and competitive against larger operations with more resources at their disposal who can outbid smaller ones for better hardware deals or lower electricity costs..
Conclusion
As it stands, some miners are finding themselves between a rock and a hard place; on one hand they have no choice but keep going due to sunken costs associated with hardware investments and electricity bills already paid for – yet on the other hand they’re facing diminishing returns as BTC prices fail at making any substantial progress northwards amid what now appears as another prolonged bear market cycle.