The data shows that bitcoin’s mining rate has already fallen from the new all-time high as the price of the cryptocurrency continues to struggle.
Weekly bitcoin hash rate trending sharply lower
The “mining hashrate” is an indicator that measures the total amount of computing power connected to the BTC network. This may interest you: Pacman Frog (PAC) aims to make 1000x profit just like Solana (SOL) and Decentraland (MANA)..
When the value of this parameter increases, it means that more mining devices are going online at the moment. Such a trend may suggest that miners are currently finding the network attractive.
On the other hand, a drop in the indicator suggests that some miners retired their machines from the network, possibly due to low profitability.
In general, high hash rate values are reflected in better blockchain performance, while low values can result in slower transaction processing.
Here is a graph that shows the trend of bitcoin hashrate over the past year:
As you can see from the chart above, Bitcoin’s weekly mining hash rate hit a new all-time high (ATH) of 231 EH/s a few days ago.
However, for about two days, the metric has already observed a strong downward trend, and its value is now around only 200 PE/s.
Miner earnings mainly depend on two things: the value of BTC in USD and the total hash rate of the network.
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Since miners normally pay their electricity bills and other operating costs in dollars, the price of BTC in dollars is important to them.
Due to the recent bitcoin price crash, miner block rewards (which have a fixed value as a whole) are now less valuable.
The hashrate represents the level of competition between individual miners. The higher its value, the more the rewards are divided among the miners.
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Thus, high throughput can lead to lower rewards for all or some miners (unless they seek competition by expanding their facilities).
Both of these factors haven’t worked out from the perspective of bitcoin miners recently, so their revenue has suffered.
With the ongoing crypto price struggle in recent days, it seems that miners with low efficiency machines or high electricity costs have started taking some devices offline, thus seeing a drop in hashrate.
As of this writing, the price of bitcoin is hovering around $19.4,000, down 29% in the past seven days. This may interest you: Binance pulls LUNA from the platform, while Terra offers token burning to save UST.