Future

Bitcoin

April

<a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> are encountering a challenging month in May, despite a rise in Bitcoin’s price, due to a significant drop in <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">hashrate</a> and earnings. According to the seven-day simple moving average (SMA) from <a href="https://ultramining.com/news/en/luxor-innovates-with-extended-contracts-and-daily-settlements-for-enhanced-bitcoin-mining/" rel="noopener noreferrer nofollow">Luxor</a>’s hashrateindex.com, the Bitcoin network’s hashrate has consistently stayed below the 600 exahash per second (EH/s) mark for about a week, recording a decrease from 647 EH/s on April 27 to approximately 592 EH/s by May 15, according to <a href="https://news.bitcoin.com/bitcoin-miners-face-significantly-reduced-earnings-in-may-despite-bitcoin-price-rise/" rel="noopener noreferrer nofollow">Bitcoin.com</a>.
Data from the Bitcoin network indicates that between block heights 843,210 and 843,627, miners received an average of 3.293 BTC per block. This includes the 3.125 BTC block subsidy and roughly 0.168 BTC in transaction fees per block. In the first half of May, total mining revenues amounted to $411.28 million, with transaction fees contributing about $34.65 million, or 8.42%, of the total.
Despite Bitcoin’s price rise, which has driven the <a href="https://ultramining.com/news/en/bitcoins-rebound-above-30k-boosts-hashprice-a-4-leap-in-24-hours/" rel="noopener noreferrer nofollow">hashprice</a>—the daily value of 1 petahash per second (PH/s) of output—above $50, miners' earnings have declined significantly. March saw <a href="https://ultramining.com/news/en/bitcoin-miners-face-sinking-revenues-as-per-terahash-earnings-nosedive-to-new-lows/" rel="noopener noreferrer nofollow">miners earning</a> over $2 billion, and April's earnings were around $1.79 billion. However, May's revenues are unlikely to reach those levels. The hashprice, although improving from a low of $46.51 per PH/s on May 9 to $52.36 per PH/s, still reflects the financial strain on miners.
The reduction in miner earnings is partly due to the latest Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a>, which cut block rewards to 3.125 BTC. Moreover, the most recent difficulty adjustment on May 9, marking the largest decrease since December 2022, provided some relief to miners. Another expected difficulty reduction around May 23 could further aid their efforts.
As miners navigate these turbulent times, their sustainability will hinge on both technological advancements and market dynamics. Future Bitcoin price movements and difficulty adjustments will play crucial roles in shaping the landscape for Bitcoin mining operations. The delicate balance between computational power and financial returns continues to be a significant challenge for miners in the evolving cryptocurrency ecosystem.

Bitcoin Miners Face Significantly Reduced Earnings Despite Bitcoin Price Increase

Ultramining_Eng

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