Bitcoin daily mining revenue slumped in May to eleven-month low
|Bitcoin (BTC) mining revenue and profitability have continued to slide along with the asset’s price this year as the crypto winter deepens.
May has been one of the worst months for Bitcoin miners in the past year as revenue and profitability continue to tank. Bitcoin daily mining revenue tanked as much as 27% in May, according to data from Ycharts sourcing data from Blockchain.com.
On May 1, the analytics provider reported daily revenue of $40.57 million for BTC miners, but by the end of the month, it had fallen to $29.37 million. Daily mining revenue hit an eleven-month low of $22.43 million on May 24.
BTC daily mining revenue YTD – ycharts.com
Daily mining revenue spiked to a peak of around $80 million in April 2021 but has since fallen 62% to current levels.
Mining profitability, which is a measure of daily dollars per terahashes per second, has hit its lowest levels since October 2020, according to Bitinfocharts. The crypto metrics provider currently reports mining profitability of $0.112 per day for 1 Th/s.
Furthermore, the metric has seen a decline of 56% since the beginning of the year and is down more than 75% since the 2021 highs of $0.450 each day per Th/s.
BTC mining profitability 1y – bitinfocharts.com
Bitcoin network hash rates remain high, however, with the current daily average at 211.82 exahashes per second, according to Bitinfocharts. The figure is down roughly 16% from its all-time high of just over 250 Eh/s on May 2.
High hash rates but low profitability may suggest that there is a far greater level of competition in the Bitcoin mining sector than seen previously. In earlier bear markets, miners have powered down their rigs as the asset price dropped and the operations became temporarily unprofitable.
Additionally, miners to exchange flows have just hit a four-month high, according to Glassnode, suggesting that they may be making preparations to sell some to cover the falling revenue.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.