Bitcoin’s hash price, a critical measure of miner income per terahash, has dropped to one of its lowest levels on record. According to data from Luxor Technology’s Hashrate Index, Bitcoin’s hash price fell almost 52% to $0.0459 per terahash second on June 24 after reaching a two-month high of $0.095 on June 8. It was approaching its record low of $0.0447 set on May 1 but has since rebounded to $0.0479 in the past few hours.
In a June 23 X post, Adam Ortolf, a developer at Bitcoin mining firm Upstream Data, commented on the challenging conditions for Bitcoin miners. Ortolf stated that Bitcoin hashpower has experienced a significant decline during this difficulty epoch, and that miners are facing serious challenges as the hash price hovers around $0.05 TH/s.
Thankfully, most Bitcoin mining machines are still profitable under the current conditions, according to Mitchell Askew, head analyst at Blockware Solutions. The hash price is primarily influenced by the price of Bitcoin (BTC), miner rewards, and mining difficulty, all of which have recently plummeted.
Bitcoin’s price has dropped by 6.8% in the last week to $60,590, with market sentiment declining due to Mt. Gox’s plans to sell $8.6 billion worth of Bitcoin to creditors and outflows from United States spot Bitcoin exchange-traded funds in the last two weeks.
In addition, the rewards for Bitcoin miners have been affected by the fourth Bitcoin halving since April 20, which reduced the block subsidy from 6.25 BTC to 3.125 BTC, equivalent to $188,800 at current prices. The network mining difficulty, which measures the difficulty of mining a block, has also decreased by 5% to 83.68 trillion hashes after reaching a record high on April 25.
A significant amount of Bitcoin has also been sold off by miners, leading to a decrease in Bitcoin miner reserves to 1.90 million Bitcoin on June 19, the lowest level in Bitcoin terms in over 14 years.