Bitcoin Miner Revenue Shed 50% in 3 Months: Data
While Bitcoin network fundamentals such as hash rate and difficulty have reached peaks, the same cannot be said for its hash price.
The world’s largest crypto’s price has failed to recover, and miners are facing the brunt of it yet again. Bitcoin hash price – which can be described as the revenue generated by miners on a per tera-hash basis – has declined to levels not seen since the dramatic implosion of FTX in November 2022.
Bitcoin Miner Revenue Declines
Data from Bitinforcharts suggests that Bitcoin mining revenue dropped to $0.058 per terahash per second per day, down by over 50% since the Ordinal-driven frenzy of May when the figure surged to $0.118 per terahash per second per day.
Hash price, a.k.a miner revenue, has a positive correlation with changes to the price of Bitcoin and transaction fee volume. Meaning – the higher the price of bitcoin and/or the transaction volume, the higher the dollar-valued rewards per TH/s. On the other hand, the hash price has a negative correlation with hash rate/mining difficulty adjustments.
Miners’ Woe Exacerbates
The decline in miner revenue comes days after the network difficulty hit an ATH of 55.62 trillion hashes while Bitcoin’s price was stuck at around $26k. While speaking to CryptoPotato, a Bitfinex spokesperson said that miners view the current Bitcoin price to demonstrate a downward deviation in the true value of the flagship crypto.
They further added that miners could believe Bitcoin, at the current level, is fairly valued or maybe a little underpriced of its true value, and hence the low selling rate from miners.
“Miners could be confident that the price of Bitcoin will eventually rebound as this can be seen as a mere downward deviation from its real value. Hence investing more resources to mine Bitcoin at these prices could be highly profitable to them.”
Miners find themselves at a crossroads, deliberating whether to retain their BTC holdings or liquidate them to maintain their profit margins during this period of price decline. Should miners start offloading their tokens, they could contribute to pushing Bitcoin’s value further downward, worsening the existing market condition.
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