Bitcoin Mining Profits Plunge as Hash Price Hits New Low
Bitcoin mining crisis post-halving
In the ever-turbulent world of cryptocurrency, Bitcoin miners are currently facing a significant decline in profits. This downturn comes shortly after they experienced record-breaking earnings during the Bitcoin halving event. The average revenue per hash, a critical metric in mining profitability known as the hash price, has plummeted to its lowest level since October 2023, according to analytics from CryptoQuant.
The hash price saw a steep drop from about $0.12 in early April to just $0.07 after the halving, with a brief peak at $0.19 on the day of the halving itself. This dramatic fall occurs as the Bitcoin halving slashed the miners’ block reward from 6.25 BTC to 3.125 BTC. Despite these challenges, the overall network hash rate—a measure of the computational power used for mining—has surprisingly maintained stability.
The post-halving environment also witnessed transaction fees soaring to make up 75% of the total miner revenue on the halving day, totaling approximately $80 million. However, this figure has since decreased to around 35%. Such a dynamic suggests that while immediate impacts seem manageable, the long-term outlook could be grim unless Bitcoin prices continue to hold steady or rise. Currently, Bitcoin is sustaining a value above the $64,000 mark.
The operational costs for miners are on the rise as well, with estimates suggesting that using an Antminer S19 XP could now cost anywhere from $40,000 to $80,000 post-halving. Despite these cost increases and revenue fluctuations, the unchanged network hash rate implies that miners are not yet ready to leave the market. Nonetheless, future profitability for Bitcoin mining will heavily depend on the currency's price movements and operational expenses, including electricity costs, which are pivotal to sustaining mining activities in this competitive field.