The seven-day simple moving average (SMA) data on Bitcoin's hashrate reveals that it has stayed below the 600 exahash per second (EH/s) threshold for approximately one week. The recent increase in bitcoin's price has positively impacted the overall hashprice, with the value of 1 petahash per second (PH/s) daily surpassing the $50 mark.

Bitcoin Hashrate and Miner Earnings Decline: Navigating Challenges in May

Bitcoin's hashrate indicates the computational power dedicated to securing BTC blocks on the network, rewarding miners with 3.125 BTC and associated fees for each block they mine. According to Luxor’s hashrateindex.com, on April 27, 2024, the hashrate stood at 647 EH/s. However, by May 15, it had dropped to around 592 EH/s, hitting a low of 582 EH/s on May 8.

Bitcoin Miners Experience Substantial Earnings Reduction in May Despite Bitcoin Price Surge

Analyzing 417 blocks from block heights 843,210 to 843,627, spanning May 13 to May 15, reveals that miners received an average of 3.293 BTC per block, including both the 3.125 BTC block subsidy and approximately 0.168 BTC in fees per block. May is proving to be a month of diminished earnings for miners, with revenues totaling $411.28 million in the first 15 days. Transaction fees accounted for about $34.65 million, or 8.42%, of this total.

Bitcoin Miners Face Substantial Earnings Reduction in May Despite Bitcoin Price Surge

Miners earned just over $2 billion in March and $1.79 billion in April. However, May's earnings are unlikely to reach those levels. Bitcoin's hashprice, representing the daily value of 1 petahash of output, currently sits at $52.36, an improvement from the low of $46.51 per PH/s on May 9. Despite halved block rewards and minimal fees, the rising BTC value is favorable for miners.

The next considerations for BTC miners revolve around future outlook and the sustainability of reduced revenue. The recent rise in BTC's price and a favorable difficulty adjustment at block height 842,688 on May 9 have been beneficial. The next retarget, expected around May 23, may bring another decrease, further benefiting miners.

The ongoing trends in bitcoin's hashrate and miner revenues underscore the delicate balance between computational power and financial returns in the crypto ecosystem. As miners adapt to fluctuating hashprices and reward structures, the sustainability of their operations hinges on technological advancements and market dynamics. Future difficulty adjustments and BTC price movements will play pivotal roles in shaping the miner landscape.

What are your thoughts on the hashrate remaining below 600 exahash and the revenue decline? Share your opinions in the comments below.