The decline in bitcoin’s price has made Bitcoin miners one of those hardest hit. The miners are now in a difficult spot, with their revenue dropping after what could be described as a spectacular run to the 2021 end. As the miner revenue per day remained low in June’s first week, the previous week was no exception. This signals a continued decline in cash flow.
Bitcoin miners take a hit
Bitcoin miners are not having a great few months. Due to bitcoin’s falling prices, miners have seen their revenues take a big hit. After seeing their daily numbers drop to $26 millions the week prior, and having seen a 1.47% rise last week, miner revenues jumped to $27.19M. It is far from the amount that miners earned when digital assets were at their highest price.
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When bitcoin traded at $69,000 an ounce, the daily mining revenues of miners totalled $62million. The daily revenue of miners has fallen more than 50% over the last six months. Some miners have had to sell their assets to fund their operations because of this drop in profitability.
Average at 1.67 percent, this percentage is the same as last week. This metric saw no change in the last week, even though many had gone green. The number of transactions per day increased by 0.2%, but they remain very low.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
The past week saw an increase in daily transaction volumes. It saw a 9.92% rise in transaction volume, from $4.595 Billion the week before to $5.051 Billion last week. This was the most significant metric for growth over the past seven days.
Hashrate takes a nosedive
Since the decline in daily miner revenue, bitcoin hashrate too has fallen. Hashrate’s decline has been caused by a drop in mining revenues. Some miners were able to sell their shares and their BTC to fund their mining operations. Others have struggled to keep up. They have been forced to disconnect their rigs from the market and take a bow.
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As a result, the bitcoin hashrate has dropped 10% over the past month. This has caused a drop in block production to 5.85 blocks an hour. That’s a decrease of 1.11% from last week. However, average transactions per block have increased by 0.23% in the last seven days.
Source: Arcane Research| Source: Arcane Research
If there’s no increase in miner income, more miners who have high production costs will cease operations. A lot of miners may experience losses due to the lower price and 6.25 BTC per block.
The Wednesday decrease in difficulty in mining is likely to occur, which could trigger a recovery of the hashrate.
Featured Image from Coingape. Charts by Arcane Research and TradingView.com.
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