Bitcoin Miners are currently facing a financial squeeze as their earnings from mining have fallen below pre-halving levels.
On Friday, Bitcoin’s hashprice was $56.95 per petahash per second (PH/s), but by Sunday, it had dropped to $51.66 per petahash.
According to Bitcoin News, over the last 100 blocks, bitcoin miners averaged about 3.55 BTC for each block they mined, indicating that bitcoin miners are receiving less than half a BTC per block in onchain fees.
The High fees the miners usually enjoy which could serve as a buffer for some miners to cushion the recent downturn of financial earnings have been erased after block height 840,000.
As of yesterday, Bitcoin’s hashprice, or the expected value of 1 PH/s of hashing power per day, was approximately $51.66 per petahash.
Before the halving event, which reduced BTC’s block rewards from 6.25 BTC to 3.125 BTC, miners were earning over $100 per petahash per day. Regardless of perspective, miners have experienced a significant drop in revenue, akin to a drastic 50% off clearance sale.
Data from blocks 840,849 to 840,949 showed an average reward of 3.83 BTC per block, but this figure fell in subsequent blocks. On April 27, between blocks 841,057 and 841,157, miners averaged 3.56 BTC, which includes the newly minted coins and fees. Between blocks 841,125 through 841,225, miners averaged 3.55 BTC.
The Mining data above reflects a continuous drop in block rewards earned by miners post-halving putting them in a difficult financial position.
What to know
- In terms of financial earnings, Bitcoin miners hit a record in March earning $2bn in revenue with approximately $85 million from onchain fees.
- In April, Bitcoin miners earned $1.67 billion and $269 million from onchain fees.
- Bitcoin prices are currently hovering above $63,000 with the potential of further declining to $55,000. This will create even less revenue for miners in an already dwindling market adding to their financial difficulty.
