In the last three days, bitcoin miners have experienced an 8.4% drop in profits, echoing a decrease in bitcoin prices. Since then, the network’s hashrate has fallen below the 600 exahash per second (EH/s) mark.
Price Drop Squeezes Bitcoin Mining Profits
Revenue for bitcoin miners has declined as the hashprice, the revenue from 1 petahash per second (PH/s) of hashing power per day, has diminished by 8.4% since June 14, 2024. Just three days prior, miners were earning $57.36 per petahash, but now, the hashprice stands at $52.53.
On June 12, two days beforehand, bitcoin was trading just above $69,000. As of today, the price per bitcoin has dropped to $65,539, impacting Bitcoin’s hashprice. The decline in profits appears to have influenced the network’s total hashrate, as the computational power retracted on the same day, June 14.
Prior to this, the hashrate had briefly exceeded the 600 EH/s range. According to the seven-day moving average (MA), the hashrate now stands at 594 EH/s, while the more fluctuating three-day MA is approximately 590 EH/s. However, block intervals remain steady at nine minutes and 40 seconds.
Given the current block times, the difficulty adjustment on June 20 is expected to result in only a slight 0.1% increase. Miners experienced a minor reprieve during the last difficulty adjustment, which saw a decrease of 0.79%, particularly after the previous retarget resulted in a 1.48% increase in difficulty.
With the reduced block reward from the recent halving and the lower bitcoin prices, which have subsequently depressed the hashprice, bitcoin miners are facing increased pressure. Last week, Julio Moreno, the head of research at cryptoquant.com, noted that miners were selling off their BTC reserves more than usual. As market conditions shift, the resilience of these miners will play a vital role in upholding Bitcoin’s security.
What do you think about bitcoin miners feeling the pressure from lower revenues? Share your thoughts and opinions about this subject in the comments section below.