- Bitcoin’s hash price has hit a record low, fueling fears of a new round of miner crisis.
- Network difficulty has increased by 10% and daily miner revenue has decreased by 50%.
Bitcoins [BTC] The hash price, which tracks miners’ earnings, has fallen to a record low, raising fears that BTC miners could face another profitability crisis.
According to the Hashrate Index factson August 8, the hash price dropped to $40 per unit of computing power per day.
This was even lower than the crypto winter of 2022, which hit a low of $60 per unit amid a massive BTC miner crisis.
Source: Hashrate index
With the hash price falling, BTC Miner’s daily revenue also dropped from $40 million on July 29 to around $24 million on August 7, according to YCharts. facts.
The difficulty of the Bitcoin network is increasing
Miners’ problems have been exacerbated by rising BTC network problemswhich reached a record high of 90 trillion in August, up from 80 trillion in mid-July.
This means that the computing power required to mine BTC or find a block has increased by almost 10%.
This could put a lot of pressure on small-scale miners and push them to sell their BTC holdings to cover operating costs or close down.
As of August 7, the average mining cost was $83.6K, against the BTC price of $55K, per MacroMicro facts. That’s a whopping +$23K shortfall.
Source: MacroMicro
However, well-scaled and optimized miners, such as Marathon Digital, have an average mining cost of $43,000.
According to the founder of CryptoQuant Ki Young Juthis meant that all they could worry about was if BTC fell below price for far too long.
Source: CryptoQuant
Meanwhile, the BTC Miner Reserve fell by more than 1,100 BTC on August 7, indicating that some miners have sold some of their holdings.
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The statistic tracks BTC miners’ total holdings, which have increased since late July. It indicates that they held on even during last week’s dump.
However, sell-offs by miners could also put pressure on BTC prices. At the time of writing, BTC was trading above $58,000 and could be eyeing the previous low at $60,000. However, a continued dumping of miners could derail the recovery.