The Venezuelan National Power Ministry announced a special operation to disconnect all bitcoin mining farms from the grid. Authorities have seized over 11,000 bitcoin miners as the government seeks to reduce the power usage from high-power customers siphoning energy from the national electric system. Venezuelan Authorities Seize and Disconnect Over 11,000 Bitcoin Miners Amidst Energy […]
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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 […]
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Report: Russian Authorities Propose Steep Fines for Crypto Miners Operating in Residential Apartments
Russian authorities have reportedly proposed to impose hefty fines on suspected crypto miners operating from residential properties. Authorities may also consider including amendments to the Code of Administrative Offenses which imposes liability on those misusing electricity. Proposed Measures Aimed at Curbing Rising Power Outage Cases Authorities in Russia have signaled their intention to pursue private […]
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Bitcoin Advocate Says ASIC Devices’ Inflexibility Makes AI Involvement Unlikely for Bitcoin Miners
According to Joe Downie, the chief marketing officer at Nicehash, bitcoin miners struggling to stay afloat after the halving are unlikely to support or become involved with artificial intelligence (AI). This is because their application-specific integrated circuit (ASIC) miners now “only allow for mining on one algorithm.” Furthermore, Downie argued that bitcoin mining devices are […]
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Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners?
The Bitcoin mining difficulty has experienced a significant decrease, the largest drop observed in the last 18 months. This change is directly tied to fluctuations in the network’s hash rate, which has dipped below 600 EH/s following the recent halving event.
The adjustment, which marks a 5.7% fall in mining difficulty, brings the level down to 83.1 trillion, according to data from Bitbo.
This most substantial adjustment since December 2022 reflects broader shifts within the Bitcoin mining landscape. At that time, Bitcoin’s price hovered around ,000, contrasting sharply with current levels.
Notably, the mining difficulty, a metric that determines how challenging it is to find a new block, adjusts approximately every two weeks, or every 2016 blocks. This system ensures that block discovery remains consistent at around every 10 minutes, irrespective of the number of miners.
Impact On Miners And Market Dynamics
The recent decline in mining difficulty came after a 10% drop in the network’s hash rate from a seven-day moving average of 639.58 EH/s to 581.74 EH/s.
This decrease in hash rate led to longer average block times of about 10 minutes and 36 seconds, up from the standard 10 minutes, before the difficulty adjusted downward at block height 842,688.
The reduced hash rate also contributed to a new low in the hash price, which fell to roughly .049 per TH/s per day.
This decline impacts miners’ profitability, as the hash price, a term introduced by Bitcoin mining firm Luxor, represents the earnings a miner can expect per unit of hashing power per day.
However, today’s negative difficulty adjustment may provide some relief for miners, making it easier to mine blocks than in the previous two weeks.
Bitcoin Market Reactions And Investment Trends
The adjustments in mining difficulty and hash rate come when Bitcoin’s price also shows signs of volatility. After reaching a peak above ,000 in March, the price has fallen by 16% and is now trading around ,376.
This decline mirrors the broader trend in the mining difficulty, suggesting a possible correlation between these metrics.
Furthermore, the market has observed subdued activity in the spot Bitcoin exchange-traded funds (ETFs). Data from Soso Value indicates minimal net inflows or outflows, with Bitwise Bitcoin ETF being the only issuer that experienced inflows yesterday.
On May 8, the total net inflow of Bitcoin spot ETF was .5409 million. Grayscale ETF GBTC has no inflows and outflows. Bitwise ETF BITB saw a single-day net inflow of .5409 million. The total net asset value of Bitcoin spot ETFs is .504 billion. https://t.co/OkjFkXsACa
— Wu Blockchain (@WuBlockchain) May 9, 2024
This trend could signify a cooling interest in Bitcoin investments or a shift in investor strategy following the recent price and mining adjustments.
Feature image from Unsplash, Chart from TradingView
The Halving Effect: Bitcoin Hashrate Decreases as Miners Prepare for Probable Difficulty Drop
Just over two weeks have passed since the fourth Bitcoin halving took place. During this period, the network’s hashprice dropped from over 0 per petahash to below at the beginning of May. It has since increased to per petahash. Despite the modest rebound, the network’s total hashrate has experienced a decrease, with a […]
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Bitcoin Miners Log Second Highest Monthly Revenue in April, Despite Falling Hash Value
In April, bitcoin miners amassed the second-highest monthly revenue of the past year, following the unprecedented earnings in March. In total, they collected .79 billion, which, although 0 million less than the previous month, still exceeded the revenues of December 2023, which totaled .56 billion. Bitcoin Miners Recorded Strong Revenue Last Month On May 1, […]
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Bitcoin’s Profit Crunch: Hash Price Hits Record Low Post-Halving—What’s Next For Miners?
In Bitcoin mining, the activity’s profitability is significantly influenced by a metric known as the ‘hash price.’ This metric has recently plummeted to unprecedented levels, causing concerns within the mining community.
Bitcoin’s Latest Halving Sends Hash Price Into Freefall
As Bitcoin underwent its fourth halving event on April 20, expectations were high regarding a potential increase in miner revenue. However, contrary to these expectations, the hash price witnessed a steep decline, currently valued at less than per PH/s per day.
The concept of hash price, developed by Luxor, a Bitcoin mining services company, helps understand the daily dollar earnings a miner can expect per unit of hashing power.
Despite Bitcoin’s hash rate remaining strong, the halving event, which reduced the mining reward from 6.25 BTC to 3.125 BTC per block, has exerted downward pressure on the critical profitability metric.
This reduction in potential earnings comes when the overall cryptocurrency market, including Bitcoin, is experiencing volatility.
This downturn in hash price is not isolated but coincides with other declining metrics in BTC. According to TradingView, Bitcoin’s dominance index has also reduced, highlighting a decrease in capitalization relative to the total crypto market.
Bitcoin’s dominance has declined from 57.10% mid-month to approximately 54.69% today. Concurrently, Bitcoin’s market value has also trended downward; over the past week, the cryptocurrency experienced a decrease of about 4.4%.
This downward trend persisted into the past day, with Bitcoin’s price dropping an additional 0.8%.
Signs Of A Bullish Future Amid Bitcoin Current Slump
Despite the downward turns, analysts like those from CryptoQuant suggest that bullish signals might still be on the horizon. They point to the Adjusted Spent Output Profit Ratio (aSOPR), which, despite current market indecisiveness, continues to exhibit bullish trends.
Moreover, expert analysts like Rekt Capital have weighed in with a long-term perspective, suggesting that Bitcoin could see a significant rally as part of this halving cycle, drawing parallels with previous cycles.
Historical data shows that Bitcoin typically reaches a market peak within 500-550 days post-halving. If these patterns hold, Bitcoin could be poised for substantial gains by mid to late 2025, reinforcing the cyclical nature of this leading digital asset’s market movements.
Overall, while the immediate effects of the halving on hash price and market dynamics paint a sad picture, the underlying data indicates a mix of caution and optimism.
Featured image from Unsplash, Chart from TradingView
Financial Squeeze Tightens for Bitcoin Miners as Earnings Continue to Fall
On Friday, Bitcoin’s hashprice was .95 per petahash per second (PH/s), but by Sunday, it had dropped to .66 per petahash. Over the last 100 blocks, bitcoin miners averaged about 3.55 BTC for each block they mined, indicating that bitcoin miners are receiving less than half a BTC per block in onchain fees. Bitcoin Miners […]
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Bitcoin Miners’ Average Revenue Per Block Dips 25% in 3 Days, Falling to 3.83 BTC
In the last 24 hours, bitcoin miners have faced significantly reduced earnings, with the current hashprice lingering at a significant low. Just five days ago, miners were harvesting an average of 5.105 BTC per block, between a blend of new BTC and transaction fees, following a peak in the hashprice. However, the average yield per […]
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