Bitcoin Miner Revenue Remains Low as Price Drop Continues


Bitcoin miners have been one of the most affected after the drop in the price of the digital asset. After what can be said to have been a wonderful run towards the end of 2021, the miners have now hit a rough patch where their income has dropped. The previous week would be no different, signaling a continuation of lower cash flow from miners as daily miner earnings remain low in the first week of June.

Bitcoin miners take a hit

Bitcoin miners have not had the best couple of months now. With the drop in the price of bitcoin, the income of miners has been affected. This had seen their daily figures fall to $26 million the previous week and with a 1.47% increase last week, miners’ daily earnings had risen to $27.19 million. This is a far cry from what miners were earning when the price of the digital asset reached its all-time high.

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In November 2021, when Bitcoin was trading at $69,000 each, miners’ daily earnings amounted to a cumulative $62 million. This means that the daily income of miners has decreased by more than 50% in the last six months alone. This drop in profitability has prompted some miners to start selling their holdings to finance their operations.

The percentage of mining income made up of fees remains on average at 1.67%. There was no growth in this metric since last week even though most had turned green. Transactions per day increased 0.23% but remain low.

Bitcoin price chart from TradingView.com

BTC down more than 50% from ATH | Source: BTCUSD on TradingView.com

However, daily trading volumes increased during the last week. A 9.92% rise in transaction volumes saw it jump from $4.595 billion the previous week to the $5.051 billion figure recorded last week, emerging as the fastest growing metric in the last seven days.

Hashrate plummets

The bitcoin hashrate has gone the way of miners’ daily earnings as this too has been declining recently. The drop in mining revenue has been the biggest factor in this drop in hashrate. While some miners have been able to sell shares or their BTC holdings to finance their mining operations, others have not been able to keep up. As such, they have had to take their platforms offline and bow out of the market.

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The result of this has been a 10% drop in the bitcoin hashrate over the last month. Block production has taken a hit due to this, as the number of blocks per hour now stands at 5.85 blocks per hour, which is a 1.11% decrease from the previous week. However, the average transactions per block increased, registering a growth of 0.23% in the last 7 days.

bitcoin hash rate

BTC hashrate drops 10% | Source: Arcane Research

More miners with high production costs are expected to stop their operations if there is no improvement in daily mining income. With rewards of 6.25 BTC per block mined and lower prices, many miners are likely to be at a loss.

Wednesday is expected to see a decrease in mining difficulty, which will hopefully trigger a recovery in hashrate.

Featured image from Coingape, charts from Arcane Research and TradingView.com

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