Hashprice plunged to its lowest level since April, when bitcoin was trading around $76,000, now sitting at $43.1 per petahash/second (PH/s).
Hashprice, a term coined by Luxor, refers to the expected value of one terahash per second (TH/s) of hashing power per day, representing how much a miner can earn with a specific amount of hashrate. It is influenced by bitcoin price, network difficulty, block subsidies and transaction fees.
As bitcoin has corrected about 20% from its October all-time high of $104,000 and transaction fees remain at bear market levels, miner revenues are under increasing pressure.
According to mempool.space, processing a high-priority transaction currently costs around 4 sat/vB ($0.58), while average transaction fees on an annual basis are at their lowest levels in years.
The hash rate, the total computing power used by miners to secure the Bitcoin network, remains just below all-time highs, at over 1.1 zettahashes per second (ZH/s).
This coincided with a recent difficulty adjustment reaching a record high of 156 trillion (T), up 6.3%.
The difficulty adjustment is recalibrated approximately every two weeks to ensure that new blocks are mined approximately every ten minutes, maintaining network stability as mining power fluctuates.
Falling Bitcoin prices, low transaction fees, and record difficulties are all weighing on the profitability of Bitcoin mining.
As a result, Bitcoin miners have turned to AI and high-performance computing (HPC) data center operations to secure more reliable sources of revenue. By entering into longer-term contracts with data companies, miners can stabilize their cash flow and reduce their reliance on volatile Bitcoin market conditions.
