Bitcoin miners earn near record lows
The falling price causes Bitcoin miners to collect less and less money, while investors also limit trading this digital currency.
According to data from the Hashrate Index , as of August 28, Bitcoin's hash price has dropped to $0.06, just below the record $0.058 recorded at the end of 2022 - when a series of Bitcoin mining systems simultaneously warned of a liquidity crisis, and some declared bankruptcy.
HashPrice is an indicator of the revenue that miners earn from a unit of hash rate (hashrate - the computing power of the blockchain mining system) in a specific time frame. According to Bloomberg , the above figure shows that miners are in great difficulty.
Bitcoin's hashprice index has dropped to near its lowest level. Source: Hashrate Index
Last week, Bitcoin mining difficulty rose to a record when the hashrate was 368.86 exahashes per second (EH/s), according to BTC.com . This number is much higher than the 321 EH/s recorded at the beginning of the year.
Bitcoin price is currently around 26,000 USD per coin, lower than nearly 30,000 USD per coin at the beginning of the month. Last year, the price of this digital currency sometimes reached $16,500, down more than 64% from the peak of $69,000 at the end of 2021. The price of Bitcoin went down, making investors not interested in trading. According to data analytics firm CryptoQuant, August trading volume fell to 112,317 Bitcoin, the lowest since November 10, 2018 and down 94% from the peak of 3.5 million Bitcoin recorded. in March.
"Bitcoin trading on most exchanges is down, as retail investors leave. This happened in 2022 and is coming back," said Julio Moreno, head of research at CryptoQuant. CNBC .
An employee checks the mining system at the Bitminer Bitcoin mining factory in Florence (Italy) April 2018. Photo: Reuters
Meanwhile, Bernstein analyst Gautam Chhugani thinks that the crypto market is entering its most dull phase. "Participants are not interested in trading, and the market is waiting for a catalyst," Chhugani wrote on his blog August 28, saying that it will take until the "Halving" event of 2024 that things will take off.
The Bitcoin Halving is an event that occurs every four years, when the reward for mining a Bitcoin block is halved. Bitcoin's first "halving" took place in 2012, the second in 2016 and the third in 2020. According to Cantor Fitzgerald analyst Josh Siegler, Bitcoin's current difficulty is short-term and investors are still trust Bitcoin in the long run.