Svmuu News Bitcoin Miner revenue has continued to decline over the past year; the current 7-day moving average daily revenue is approximately $30 million, significantly lower than the level of over $50 million seen last summer. Of this, transaction fees now account for less than $250,000 per day, which is virtually negligible compared to block rewards.
Meanwhile, the price of Bitcoin is hovering around $62,500, below the production cost of approximately $78,000 estimated by JPMorgan Chase. This period of trading below production costs has now lasted five months—the longest stretch in this cycle. Historically, production costs are typically viewed as a soft floor for Bitcoin prices.
It is currently estimated that approximately 20% of miners are operating at a loss at current prices, and this pressure is beginning to manifest at the network level. Over the past six months, the sensitivity of mining difficulty to Bitcoin prices has risen to 0.62, indicating that high-cost miners are increasingly inclined to turn their rigs on and off in response to price fluctuations rather than continuing to mine at a loss.
In the second week of June, the Bitcoin mining difficulty dropped by 10%, marking the second time this year that a reduction of this magnitude has occurred. A similarly sized adjustment also took place in the first quarter; both instances occurred during periods when prices remained consistently below production costs, indicating that pressure on miners is intensifying. (The Block)