Hashprice, a metric coined by Luxor that measures mining profitability, estimates the daily income of miners relative to their estimated contribution to the Bitcoin network’s hash power. In other words, it is the expected value that miners can expect from 1 TH/s of hash power per day.
According to Glassnode, the hash price is above $62 PH/s, around the highest level since mid-December.
What is driving the hash price increase? Well, bitcoin (BTC) has risen to over $100,000, a 56% increase in three months and has given some relief to miners. The network has also seen a slight increase in miner fees lately, about 12 BTC per day, the highest amount in over a month, partly driven by network sign-up activity.
Due to the halving in April 2024, where mining rewards are halved, the hash price had fallen from around $115 PH/s.
As a result of the halving, miners struggled to achieve share price appreciation on average last year; while mining revenue for much of 2024 was below the 365-day simple moving average (SMA). Only since November has it recovered this moving average, which is a historically bullish signal.
While the hash rate, the computational power to mine on a proof-of-work blockchain, recently hit all-time highs, it has sent network difficulty to all-time highs as a result, affecting mining profitability, as that turns It is more difficult for miners to receive rewards.
Bitwise European head of research Andre Dragosch told CoinDesk exclusively that miners are in a healthier position than last year.
“We have recently seen a decline in the network’s hash rate from all-time highs in early January. Meanwhile, the price of bitcoin has increased and the overall transaction count has risen again. This has led to a recovery in the hash price. which should technically incentivize miners to continue increasing their hash rate.”
Dragosch says: “Overall, bitcoin miners appear to be well capitalized judging by the continued increase in bitcoin miner holdings since the beginning of the year, implying that miners are selling less than they mine daily.”
