On-chain data reveals that the Bitcoin mining hashrate has dropped to its lowest level since early March.

Bitcoin Mining Hashrate on a 7-Day Average Continues to Decline

The "mining hashrate" indicator measures the total computing power that miners currently contribute to the Bitcoin blockchain. This metric can be seen as a proxy for miner sentiment.

An increase in the indicator’s value suggests that miners are expanding their operations and new miners are joining, indicating that the blockchain appears attractive to them. Conversely, a decline in the metric implies that some miners are shutting down their machines, likely because mining is no longer profitable for them.

The chart below shows the 7-day average Bitcoin mining hashrate over the past year:

Bitcoin Mining Hashrate

The 7-day average value of the metric has been declining recently | Source: Blockchain.com

As seen in the graph, the 7-day average Bitcoin mining hashrate reached a new all-time high last month but has been declining since. This drop is likely contributing to the bearish momentum in the cryptocurrency's price.

Miners earn most of their revenue from BTC block rewards, which are fixed in value and frequency. Therefore, the variable affecting their income is the spot price of BTC. When the price falls, so does the value of these rewards, leading to decreased revenue for miners. Recently, Bitcoin's price has taken a significant hit, pushing some miners into unprofitable territory.

With the recent decline in the mining hashrate, it has fallen to its lowest level since early March. If Bitcoin's price remains low or drops further, the hashrate is likely to continue its decline.

Additionally, due to financial stress, miners have been selling their accumulated rewards, as noted by an analyst in a CryptoQuant Quicktake post.

Bitcoin OTC Desk Balance

The chart shows the trend in the Bitcoin balance held by over-the-counter (OTC) desks | Source: CryptoQuant

The chart indicates a recent increase in the Bitcoin balance on OTC desks, attributed to selling by BTC miners.

Bitcoin Price

Bitcoin is currently trading near the lower end of its recent consolidation range, with its price around $61,700.