bitcoin BTC
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Despite a brief surge in profits as rune-etching and hash rates remained relatively high, so-called hash prices fell to record lows following Bitcoin’s fourth halving on April 20.
Hash price is a term coined by Luxor, a Bitcoin mining service company, to represent the expected value of hash power of 1 PH/s or 1 TH/s per day. This metric quantifies how much profit a miner can make from a specific hashrate quantity.
According to data from Hashrate Index, hash prices today hit $50 per PH/s per day for the first time in history, with the price of Bitcoin falling below $63,000 after miners’ subsidy rewards were cut from 6.25 BTC. ($0.05 per day per TH/s). 3.125 BTC per block after halving.
Bitcoin hash prices are 10% below their previous low of about 55 PH/s per day ($0.055 per TH/s per day) at the bottom of the bear market in November 2022, when Bitcoin was trading around $16,000.
Bitcoin hash price. Image: Hashrate Index.
Rune trading fee windfall has been reduced
According to Bitcoin explorer Mempool, after halving block number 840,000, fees reached $2.4 million (far exceeding the block subsidy reward worth about $200,000), Bitcoin’s transaction fee reward for 104 blocks was higher than the subsidy. was recorded.
Much of this trading fee activity can be attributed to the hype surrounding Runes. Runes is a new fungible token standard for Bitcoin developed by Ordinals creator Casey Rodarmor that provides a more efficient solution for etching (creating) tokens for Bitcoin released during the halving.
Runes generated over $135 million in fees for miners during its first week, bringing the average transaction fees and hash price on the Bitcoin network to $182 per day per PH/s ($0.18 per day per TH/s) on April 21. ) was pulled up. This bitch.
However, transaction fee rewards have since declined significantly and hash prices have fallen to record lows in the early hours of Monday morning.
According to data from The Block, the impact of hash price declines on hashrate (the total computational power that miners allocate to the network) is yet to be seen. Currently the 7-day moving average is holding steady at around 640EH/s. dashboard.
However, the slowdown in block generation since Bitcoin’s last difficulty adjustment on April 24th and the current average block time exceeding the target interval of 10 minutes could indicate that the network hash rate is decreasing.
Bernstein analysts Gautam Chhugani and Mahika Sapra said earlier this month that they expected the industry to further consolidate into four major public miners: CleanSpark, Marathon, Riot Platforms and Cipher Mining, predicting a significant increase in public miners’ operations over the previous halving cycle. I did.
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