Bitcoin Hash Price Approaches Record Low, Miner Reserves Hit 14-year Low
Summary:
The hash price for Bitcoin, a key metric measuring miner earnings, is nearing its all-time low, dropping 52% to $0.0459 per terahash second as of June 24. Despite the challenges, most Bitcoin mining machines remain profitable, with factors such as the Bitcoin's price, miner rewards and mining difficulty regulating the hash price. Bitcoin's cost fell to $60,590 over the past week, with miner rewards also affected by the fourth Bitcoin halving on April 20th. The network mining difficulty is down 5%, and miner reserves reached a 14-year low on June 19th.
The earnings per terahash for Bitcoin miners, also known as the hash price, are presently nearing their all-time low. According to the Hasrate Index from Luxor Technology, the hash price for Bitcoin has experienced a 52% drop to around $0.0459 per terahash second as of June 24, down from a two-month high of $0.095 on June 8. Although it was moving closer to the lowest ever record of $0.0447 from May 1, it rebounded in the last few hours to $0.0479.
In his post from June 23, Adam Ortolf, a developer at Upstream Data, a Bitcoin mining company, pointed out that Bitcoin miners are now engaged in a "survival game". Ortolf noted a significant decline in Bitcoin's hashpower during the current difficulty epoch and stated that miners are facing serious hardships with the hash price around $0.05 TH/s.
Mitchell Askew, the top analyst at Blockware Solutions, assuages some fears by claiming that most Bitcoin mining machines are still profitable given the current situation. He explains that factors such as the price of Bitcoin, miner rewards and mining difficulty, all of which have recently fallen, determine the hash price.
Concerning related news, Bitcoin’s value is experiencing a 6.8% decrease over the past week, falling to $60,590, triggered by the news about Mt. Gox’s intentions to sell $8.6 billion in Bitcoin to creditors and by withdrawal trends of US spot Bitcoin exchange-traded funds in the last two weeks.
Furthermore, the Bitcoin miner rewards faced a cut following the fourth Bitcoin halving which took place on April 20. The block subsidy dropped from 6.25 BTC to 3.125 BTC, which at current rates, is valued at $188,800.
The network mining difficulty, which denotes the difficulty level in mining a block, experienced a 5% drop to 83.68 trillion hashes, following a record high on April 25.
In addition to these events, miners are also contributing to a major sell-off of Bitcoin. On June 19th, Bitcoin miner reserves hit a 14-year low in Bitcoin terms, totaling 1.90 million Bitcoin.
Published At
6/25/2024 7:41:15 AM
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