Bitcoin Miners Face Significantly Reduced Earnings in May Despite Bitcoin Price Rise

According to the seven-day simple moving average (SMA) statistics regarding Bitcoin’s hashrate, the network hashrate has stayed below the 600 exahash per second (EH/s) mark for approximately one week. The recent rise in bitcoin’s price has positively influenced the overall hashprice as the value of 1 petahash per second (PH/s) daily has climbed above the $50 mark.

Bitcoin Hashrate and Miner Earnings Slide: Navigating May’s Challenges

Bitcoin’s hashrate represents the computational power dedicated to securing BTC blocks on the network, rewarding bitcoin miners with 3.125 BTC and the fees tied to the particular block they uncover. The seven-day SMA from Luxor’s hashrateindex.com indicates that on April 27, 2024, the hashrate was steady at 647 EH/s. Eighteen days later, on May 15, the hashrate had dipped to approximately 592 EH/s, having dropped to a low of 582 EH/s on May 8.

Bitcoin’s network hashrate on May 13, 2024.

By analyzing 417 blocks from block heights 843,210 to 843,627, covering a span from May 13 through May 15, data shows that miners received an average of 3.293 BTC per block. This average comprises not just the 3.125 BTC block subsidy but also approximately 0.168 BTC in fees per block mined. May is shaping up to be a month of lower earnings for miners, with revenues totaling $411.28 million over the first 15 days. Of this 15-day total, about $34.65 million, or 8.42%, derived from transaction fees.

Bitcoin’s network hashprice on May 13, 2024.

Miners earned slightly over $2 billion in March and $1.79 billion in April. However, May’s earnings are unlikely to even come close those levels. Bitcoin’s hashprice, or the daily value of 1 petahash of output, currently stands at $52.36. This is a significant improvement from the low of $46.51 per PH/s on May 9 and also higher than the $48.98 per PH/s noted on May 14 at 9 p.m. EDT. Although BTC’s block rewards have been halved and fees remain minimal, the increasing value of BTC is a positive development for miners invested in the network.

The next factors to consider for BTC miners are the future outlook and whether the reduced revenue is sustainable. As noted, the rise in BTC’s price is advantageous, and the most recent difficulty adjustment was also favorable for miners. The adjustment at block height 842,688 on May 9 marked the most significant decrease since December 2022. Statistics as of May 15 indicate the next retarget is expected on or around May 23, with another reduction in the cards. Higher BTC values and another difficulty decrease would greatly benefit miners.

The recent trends in bitcoin’s hashrate and miner revenues highlight the delicate balance between computational power and financial returns in the cryptocurrency ecosystem. As miners navigate fluctuating hashprices and reward structures, the sustainability of their operations will depend on both technological advancements and market dynamics. The upcoming difficulty adjustments and bitcoin price movements will be crucial in shaping the future landscape for miners.

What do you think about the hashrate remaining under 600 exahash and the revenue drop? Share your thoughts and opinions about this subject in the comments section below.

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