While the markets are showing signs of recovery, the mining hash rate of Bitcoin (BTC) has declined. In the past month, the BTC hash rate fell 17.4% from an all-time high. According to BitMEX, a leading crypto exchange, there are two main reasons for the hash rate drop.
First, BitMEX Says It Has Made a Lower Bitcoin (BTC) Price older machines unprofitable. The second reason given by BitMEX is the heat wave that swept through America, especially Texas. Due to the scarcity of the energy supply, mining installations had to perform in smaller numbers.
How are Bitcoin miners doing?
BitMEX stresses that Bitcoin’s hash rate has rarely fallen this low. Nevertheless, it is up 13.93% this year, while the price of BTC has fallen by 56% over the same period. As a result, the difficulty revision experienced the most significant downward revision since China’s mining ban. BitMEX says this is a positive development for miners’ profitability.
At the time of writing, Bitcoin (BTC) mining revenues totaled 21.196 million. Just two weeks ago, miners’ revenue hit a low of 13.9 million. In July, miners’ earnings came in at just under half a billion dollars, which was below the six-year average.
The exchange reports that while the global hash rate is about 20 times greater, we are almost back to the USD revenue levels that miners generated at the end of 2017. Plus, the stock market thinks the monthly earnings recovery will be slow, and we’re not sure. of miner capitulation activity.
BitMEX also uses the Puell Multiple as a key metric in their assumptions, considering miners’ earnings over the past 365 days average. The periods of low Puell Multiple values below the 15th percentile (about 50% of median income) in the past two cyclical bear markets and the March 2020 crisis have ranged from five to nine months. For the current cycle we are a few months further.
At the time of writing, Bitcoin (BTC) was trade at $24,053.01, up 3.1% in the past 24 hours.