Bitcoin’s 30-day hashrate high hits miner profitability

An uplift in hashrate suggests miners continue to invest in more sophisticated hardware

article-image

Marko Ahtisaari, CC BY 2.0, via Wikimedia Commons, modified by Blockworks

share

Bitcoin’s network hashrate touched fresh peaks this week, marking a surge in capacity even as profitability for miners continued to fall.

Viewing the metric over a 30-day Simple Moving Average shows a clear upward trajectory, topping out at 397 exahashes per second (EH/s) on Tuesday, Hashrate Index data shows. That figure has since cooled slightly to 395 EH/s.

An uplift in hashrate, or a measure of the computing power that secures the Bitcoin network, suggests miners continue to invest in more sophisticated hardware, according to South Korean data analytics firm CryptoQuant.

“People are squeezing everything they can out of current-gen machines prior to the halvening,” Nick Cote, co-founder of the secondary OTC marketplace, Secondlane, told Blockworks.

“At these scales, every optimization on the machines makes a larger difference on the underlying margins,” Cote said.

Even still, the latest tick-up has come at a cost. Declining hash price and miners’ fees have continued to negatively impact revenue, placing further downward pressure on the asset’s price. 

Hash price, or miner revenue per petahash (PH/s), fell to its lowest level late last month, dropping from a yearly high of $127 a day in early May to just $59, Blockworks previously reported

CryptoQuant believes the decline in hash price is due to a sharp drop in transaction fees, particularly after an initial spike related to non-fungible tokens minted on the Bitcoin network in May.

Since then, lower miner fees have continued to place pressure on miners’ daily earnings. In response to those shifting market dynamics, a noticeable increase in miner-to-exchange flows can be observed, especially as bitcoin’s price gravitates towards $25,000.

This suggests that some miners are liquidating portions of their bitcoin holdings to offset declining revenues, CryptoQuant said.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

logo.jpeg

Research

Akash is a general-purpose compute platform with GPUs, storage, LLM training or inference, and validator hosting through its two-sided marketplace.

article-image

The SEC could allow half a dozen or more such funds to launch at once, Ark Invest CEO says

article-image

2023 saw a decline in a16z crypto funding, but the behemoth VC firm teased what it’s excited for next year

article-image

“Iran Unchained” launched a new version of its grant platform to make donations to activists easier

article-image

The stablecoin marks the first time a regulated European bank has made a euro-pegged stablecoin available on a crypto exchange

article-image

Build it and they will come, perhaps, but making crypto easier to use is turning out to be just as important

article-image

Amid moves by Itau Unibanco and Nubank, the country could serve as “a proof of concept” for TradFi-crypto integrations, industry research exec says