Bitcoin price continues to hover around $20,000, failing to rise beyond the crucial resistance levels of around $20,800. Amidst the sceptical market conditions, the BTC mining difficulty, measured by the hash rate, is reaching new highs. On the contrary, the miners continue to mine BTC at a loss as the revenue fails to compensate for the cost of production.
Recently, the hash rate, which had dropped more than 50% following the unfamous May 2022 crash, rebounded finely and rose high enough to mark new records.
While the mining difficulty has increased, the miner’s revenue has dropped significantly. The revenue has reached a peak at $74.418 million while BTC price marked its highs at $69,000 back in October 2021. Ever since then, the revenue has dropped & reached a low of $13.92 million, presently standing at $20.49 million.
It is a known fact that the miner’s revenue is halved every 4 years, marking the Bitcoin halving event to curb inflation. Presently, BTC rewards have dropped heavily to an all-time low of 4.06 BTC per Exahash. Hence, the revenue in USD equates to $78,000 to $88,000 per Exahash per day, which has dropped back to the October 2020 levels.
The revenue back in October 2020 dropped, marking the 2020 halving event wherein BTC prices were around $10,000. However, the mining difficulty has increased by nearly 66% since then while the revenue remains the same. Despite this, the miners continued to hold around 78.4K BTC in their treasuries. Therefore, they are signalling the possibility of a remarkable bull rally ahead.