Hashprice has plummeted 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 hash power per day, which represents how much a miner can earn with a specific amount of hashrate. It is influenced by the price of bitcoin, network difficulty, block subsidy, and transaction fees.
As bitcoin has corrected roughly 20% from its October all-time high to $104,000, and transaction fees remain at bear market levels, miners’ revenues have come under increasing pressure.
According to mempool.space, processing a high-priority transaction currently costs around 4 sat/vB ($0.58), while average transaction fees annually 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 of more than 1.1 zettahashes per second (ZH/s).
This has coincided with a recent hardship adjustment that reached an all-time high of 156 trillion (T), an increase of 6.3%.
The difficulty setting 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 difficulty are 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 ensure more reliable revenue streams. By closing longer-term contracts with data companies, miners can stabilize cash flow and reduce dependence on volatile bitcoin market conditions.
