With the current hashprice at $0.05 per TH/s per day, many miners of the leading cryptocurrency are facing significant challenges, according to Upstream Data’s client manager, Adam Ortolf.
So far this difficulty epoch it looks like #bitcoin hashpower has fallen off a cliff.
Avg blocktime over the last 460 blocks has been 647sec or almost 8% slower than 600-sec target.
Considering hashprice is $0.05 many miners are currently enduring serious pain.
Survival games pic.twitter.com/i18EnuM2fj
— ?Adam O? (@denverbitcoin) June 23, 2024
“At the moment, this mining difficulty epoch looks as if Bitcoin’s hashpower has fallen off a cliff,” the expert noted.
He pointed out that over the past few days, the average block creation time has been 647 seconds, approximately 8% slower than the algorithm’s target of 600 seconds.
According to Glassnode, the hash rate smoothed by a seven-day moving average (7 DMA) is at ~574 EH/s. This is nearly 12% below the ~650 EH/s recorded prior to the April halving.
According to BTC.com, the next mining difficulty adjustment is expected to decrease by 3.25%.
In mid-June, on-chain analyst Ali Martinez suggested that the reduction in block rewards and mining profitability triggered a wave of capitulations among Bitcoin miners. This was also indicated by the Hash Ribbons indicator. However, Charles Edwards, the founder of Capriole Investments who created the metric, described it as an “optimal signal” for buying digital gold before a bullish rally.
Bitcoin reserves held by cryptocurrency miners have fallen to 2021 lows, noted CryptoQuant.
According to Ortolf, miners have entered a “survival game.”
Glassnode analyst James Check, known as Checkmatey, disagrees with such views. He estimates that no more than 5% of the industry’s capacity is experiencing profitability issues. Check believes this is “not that much,” and the market situation does not resemble a “total sell-off,” although miners are “treading water.”
A similar perspective was shared by Blockware Solution’s newsletter editor Mitchell Eskew. According to his data, most miners continue to operate profitably despite the recent price dip.
Most #Bitcoin miners are still profitable here
The strong survive https://t.co/RZJIR3cwhG pic.twitter.com/ObSOWdkfzW
— Mitchell ??? (@MitchellHODL) June 24, 2024
According to MacroMicro, the average cost of Bitcoin production at the time of writing is $44,624, with a spot price of $61,065.
As noted by CryptoQuant, the bull phase of the first cryptocurrency’s market is not yet over, as indicated by on-chain indicators.
Industry experts have expressed optimism about the growth of digital gold, based on derivatives market data.