Decline in Bitcoin Miners' Earnings Leads to Network Hash Rate Drop

The Bitcoin network hashrate has decreased, likely due to a drop in miners' earnings from lower block rewards and fees. This decline, with fees now around 0.076-0.16 BTC, is amid a 5% weekly and 10% 30-day price drop for Bitcoin. In June, mining revenues are on track to be similar to May's, with fees making up a smaller portion. The network hashrate, currently at 560 exahash per second, has dropped by 100 EH/s since May, potentially due to miners scaling back operations. Two difficulty adjustments have helped stabilize the situation, with the difficulty expected to drop further.

The Bitcoin network hashrate, currently at 560 exahashes per second (EH/s), has experienced a decline of 100 EH/s since May, potentially due to a decrease in miners' earnings from lower block rewards and transaction fees [1]. The current fee range is around 0.076-0.16 Bitcoin (BTC), contributing to a smaller portion of mining revenues.

In the past week, Bitcoin's price has dropped by 5%, and over the past month, it has experienced a 10% decline, reaching a low of $63,000 [1]. This price drop, coupled with the lower block rewards and fees, has impacted miners' profitability, leading to a decrease in hashrate.

In June, Bitcoin mining revenues are expected to be similar to May, with fees contributing a smaller portion [1]. This situation has prompted some miners to scale back operations, further contributing to the decline in hashrate.

The Bitcoin network undergoes two difficulty adjustments every 2016 blocks to maintain a stable mining time [2]. These adjustments help stabilize the situation by reducing the mining difficulty when the hashrate declines and increasing it when the hashrate rises. With the current decline in hashrate, the difficulty is expected to drop further.

The Bitcoin hash price, the expected value of 1 hash per second (PH/s) or 1 terahash per second (TH/s) of hashing power per day, has reached an all-time low of less than $50 per PH/s per day ($0.05 per TH/s per day) [1]. This decline in hash price indicates that miners can now earn less from their hashing power, further contributing to the decrease in hashrate.

Despite the recent decline in hashrate, Bitcoin's hash rate has remained at comparatively high levels compared to previous bear markets [1]. However, the ongoing decline in hashrate and hash price is a cause for concern for the Bitcoin network's security and stability.

References:

[1] "Bitcoin mining hash price hits all-time low following April halving." The Block, 17 May 2023, https://www.theblock.co/post/291420/bitcoin-mining-hash-price-all-time-low-halving.

[2] "Bitcoin Difficulty." Blockchain.info, https://www.blockchain.info/charts/bitcoin-difficulty.