The Bleak Landscape of Bitcoin Mining
This year’s crypto winter is hitting miners hard, and May was like a chilly slap in the face. As the price of Bitcoin plummeted, so did the daily mining revenue, with a staggering 27% decrease reported in May alone!
Revenue Collapse: A Numerical Dive
The beginning of the month saw Bitcoin miners raking in $40.57 million in daily revenue, according to Blockchain.com. However, by month’s end, this number had dwindled to a mere $29.37 million. It hit rock bottom on May 24, crashing down to an embarrassing $22.43 million—an eleven-month low! That’s like going from a high roller at the casino to scavenging for pennies on the street.
Shattering Long-standing Trends
Up until now, miners had enjoyed a fairly steady income, with cumulative monthly revenue surpassing $1 billion since August 2021. But the party came to an abrupt halt in May, with total mining revenue clocking in at $906 million. Talk about party fouls!
Profitability: Not Quite So Profitable
Mining profitability also took a nosedive, now sitting at its lowest level since October 2020. As of this month, mining profitability stands at just $0.112 per terahash per second (Th/s), a staggering 56% decline since January. For those keeping score, that’s over a 75% drop from the highs of $0.450 back in 2021. Consider that your wake-up call.
Hash Rates: A Tale of Two Worlds
Despite the financial carnage, Bitcoin’s network hash rates remain surprisingly high, averaging 211.82 exahashes per second. This is down from an all-time high of over 250 Eh/s noted on May 2 but still reflects a thriving mining scene. It seems the competition is stiffer than ever, leading to an unexpected twist where miners are keeping their rigs running despite dipping revenues.
Miners’ Exodus to Exchanges
As if the situation couldn’t get any more intense, miners’ exchange flows have reached a four-month high, hinting that many are gearing up to sell off BTC. On June 1, 2022, Glassnode reported a seven-day moving average of 6.188 BTC being moved to exchanges. This marks a notable increase from the previous high of 6.002 BTC observed on April 7. Miners might just be trying to pay the bills, or at least stay afloat in these turbulent times.
