The data shows that the month of May has seen a decline in bitcoin mining hashrate as miner revenues remain low.
The Bitcoin Mining Hash Rate Has Dropped in the Last Month
According to the latest weekly report from Arcane Research, the BTC hash rate growth that lasted throughout 2022 has stalled in May.
The “mining hashrate” is an indicator that measures the total amount of computing power attached to the bitcoin blockchain.
The rising value of the metric suggests that more mining equipment is coming online as miners are being attracted to the BTC network.
On the other hand, when the hash rate goes down, it means that miners have started disconnecting their machines, probably due to low or no profitability levels.
Now, here is a chart that shows the trend of bitcoin mining hashrate over the past year:
Looks like the value of the indicator has observed some decline in recent weeks | Source: Arcane Research's The Weekly Update - Week 21, 2022
As you can see in the above graph, the bitcoin mining hashrate has been climbing steadily since July 2021.
The bottom part then was due to China’s crackdown on mining forcing miners to cease operations in the country.
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The rise of the indicator continued until the beginning of May, until 2022. During this month, the metric has started going down.
The reason for this decline is the poor revenue that miners are facing due to the struggling price of bitcoin.
The table below shows relevant data for BTC miners and their revenue.
It seems like the transaction fees per day has gone down 4% over the last week | Source: Arcane Research's The Weekly Update - Week 21, 2022
Nevertheless, despite the recent decline, the value of the bitcoin hash rate has increased by 30% so far during 2022.
This means that competition among the miners has intensified, leading to fewer rewards for each of them. This, coupled with lower BTC prices, decreased USD revenue for miners.
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The report suggests that the decrease in hash rate is most likely because less efficient mining rigs are going offline, which were already operating near break-even levels.
btc price
At the time of writing, bitcoin is priced around $31.7k, up 7% over the past week. The chart below shows the coin’s price trend over the past five days.
The price of the crypto seems to have surged up over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research