Bitcoin (BTC) mining revenues and profitability have continued to fall along with the price of the asset this year as the crypto winter deepens.
May has been one of the worst months for Bitcoin miners in the past year as revenue and profitability continue to fall. Daily Bitcoin mining revenue decreased by as much as 27% in Mayaccording to Ycharts data from Blockchain.com.
May 1st, the analytics provider reported a daily revenue of $40.57 million for BTC miners, but by the end of the month, it had fallen to $29.37 million. On May 24, daily mining revenue hit an eleven-month low of $22.43 million.
Daily mining revenue peaked at about $80 million in April 2021, but has since fallen 62% up to current levels.
May ended the streak for miners.
Every month since August 2021 saw cumulative mining revenue above $1b until now.
Last month’s mining revenue: $906m
— Zack Voell (@zackvoell) June 2, 2022
May ended the streak for the miners. Every month since August 2021 has seen cumulative mining revenue above $1 billion so far.
Mining revenue last month: USD 906 million
Mining profitability, which is a measure of daily dollars per terahashes per second, has hit its lowest levels since October 2020according to Bitinfocharts. The cryptocurrency metrics provider currently reports a mining profitability of $0.112 per day for 1 Th/s.
Also, the metric has seen a 56% decline since the start of the year and is down more than 75% from the 2021 highs of $0.450 per day per Th/s.
However, Bitcoin network hash rates remain high, with the current daily average standing at 211.82 exahashes per second.according to Bitinfocharts. The figure is down approximately 16% from its all-time high of just over 250 Eh/s on May 2.
High hash rates but low profitability may suggest that there is a much higher level of competition in the Bitcoin mining sector than previously seen.. In previous bear markets, miners shut down their equipment when the price of the asset fell and trades temporarily became unprofitable.
Also, flows from miners to exchanges just hit a four-month highaccording to Glassnode, suggesting that they may be making preparations to sell some coins to cover falling revenue.
#bitcoin $BTC Miners to Exchange Flow (7d MA) just reached a 4-month high of 6,188 BTC
Previous 4-month high of 6,002 BTC was observed on 07 April 2022
View metric:https://t.co/WwBf5cbd33 pic.twitter.com/582pKlSeo5
— glassnode alerts (@glassnodealerts) June 1, 2022
Flows from Bitcoin miners to exchanges (7d MA) just hit a 4-month high of 6,188 BTC.
The previous 4-month high of 6,002 BTC was seen on April 07, 2022.
See metric: https://t.co/WwBf5cbd33 pic.twitter.com/582pKlSeo5
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