Bitcoin’s hash price, a crucial measure of miner revenue per terahash, has reached one of its lowest levels ever recorded. According to Luxor Technology’s Hashrate Index, on June 24, the hash price fell by nearly 52% to $0.0459 per terahash second, after reaching a two-month high of $0.095 on June 8. Although it was approaching its record-low of $0.0447 set on May 1, it has since rebounded to $0.0479 in recent hours.
Adam Ortolf, a developer at Bitcoin mining firm Upstream Data, stated in a June 23 post that Bitcoin miners are now entering a “survival game.” Ortolf believes that miners are facing significant challenges with the hash price hovering around $0.05 TH/s.
Mitchell Askew, the head analyst at Blockware Solutions, reassures that most Bitcoin mining machines are still profitable under the current conditions. However, the hash price is greatly influenced by the Bitcoin price, miner rewards, and mining difficulty, all of which have experienced significant declines in recent weeks.
Bitcoin’s price has dropped by 6.8% in the last week to $60,590. This decline in market sentiment was triggered by Mt. Gox’s plans to sell $8.6 billion worth of Bitcoin to creditors, as well as outflows from United States spot Bitcoin exchange-traded funds over the past two weeks.
Furthermore, Bitcoin miner rewards have been impacted by the fourth Bitcoin halving since April 20, which reduced the block subsidy from 6.25 BTC to 3.125 BTC, equivalent to $188,800 at current prices. The network mining difficulty, which measures the difficulty of mining a block, has also decreased by 5% to 83.68 trillion hashes after reaching a record high on April 25.
Additionally, there has been a significant sell-off of Bitcoin by miners. On June 19, Bitcoin miner reserves reached their lowest level in over 14 years, with only 1.90 million Bitcoins remaining.
In conclusion, Bitcoin’s hash price has reached a historically low level, causing challenges for miners. However, despite the decline in various metrics, most mining machines are still profitable. The current market conditions, along with the impact of the Bitcoin halving and mining difficulty, have contributed to the decrease in miner rewards.