Bitcoin Miners Slow Down as Hash Rate Drops 26% But Miner Revenue Spikes
Over the weekend, the Bitcoin network's hash rate hit an all-time high as it has repeatedly been doing since the May halving when it dropped about 40%.
During this time, the monthly miner revenue jumped from about $280 million (subsidy plus transaction fees) in June to $368 million in August. While the monthly miner revenue dropped in Sept. a bit, so far this month, $206 million have been recorded.
In May, the BTC price dropped from above $10,000 to $8,500 only to make its way to $11,800 today.
“The recent price rally has increased mining revenues, pushing more miners to allocate greater resources to the network, thereby increasing hash rate,” noted John Todaro, adding, “Whatever happened to that mining death spiral thesis after the halving?”
However, the growing hash rate got a break on Monday as it fell over 26%, to early September level, as per Bitinfocharts.
And this is because of the difficulty adjustment, which increased by 3.65% to make a new high of 19.97 TH. Coin Metrics stated,
“The recent Bitcoin difficulty adjustment seems to have done the trick and finally slowed down miners. Over the last 3 months, the CMBI Bitcoin Hash Rate Index increased almost 50%, peaking at an ATH of 158 exahashes per second.”
However, despite this positive adjustment, unlike the hash rate, the miner revenue in USD increased thanks to a nearly 3.5% spike in BTC price on Monday.
According to one of the biggest bitcoin mining pools, F2Pool, there may be some increase in revenue during the coming weeks as China's rainy season comes to an end.
The mining profitability saw a small spike to $0.083, which has been on a decline since June 2019 at $0.498.
Active Bitcoin addresses, which are steadily making their way to 1 million, the ATH was at 1.13 million on Dec. 14, 2017, are currently keeping between 700k and 900k.