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Bitcoin miners’ income falls to lowest since November 2020

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Key facts:
  • Miners’ income has dropped 70% since January this year.

  • Current mining income is at the same level as in early November.

The crisis and bear market continue to have a major impact on Bitcoin miners, who have seen their profits shrink as the situation worsened following the FTX exchange collapse. Now mining revenues, measured in dollars, have fallen to lows not seen in more than two years.

As demonstrated by the graphs by Braiins Mining Insights, detailing the development of the network and the Mining of BitcoinThe daily income (in USD) from the activity of miners has plummeted to just over $11.60 million. the evening of Saturday, November 26, 2022.

Although it seems like a high figure, this represents a decrease of 72%. compared to January this year, when the income of Bitcoin miners averaged $39.9 million.

The mining income of just over $11 million puts the indicator at the same level as in the early days of November 2020. That was the first year of the COVID-19 pandemic, when BTC was trading at about $13,000.

BTC attempts to break through US$16,500 mark

All this happens when bitcoin (BTC) struggles to exceed $16,500, according to data from the Price Calculator from CryptoNews. This is a minimum level that BTC has not yet broken through due to market trends. FTX cryptocurrency exchange debacle.. This was a further blow to the market, which was already in decline due to the Earth and Moon situation at the beginning of the year.

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Although the listing of the pioneering cryptocurrency could help miners’ incomes grow slightly, there is other elements that limit that reality. These include the difficulty of Bitcoin mining and the cost of energy for operators.

The graph shows the dollar decline in miners' revenue. The figure shows a 72 percent drop in revenue, from .9 million in January to .60 million on Nov. 26, 2022.
Bitcoin miners’ income fell to a two-year low of just over $11 million. Source: Braiins Mining Insights.

As reported by CryptoNews a few days ago, the difficulty of mining, which is one of the indicators suggesting the level of miners’ participation in the network, has reached record levels36.95 trillion (T).

This means that the operators must invest much more electricity and computing power in order to function. That is, at least until the new adjustment, scheduled for next December 6.

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Reference Binance countries

Regarding electricity, it is well known that after the war between Russia and Ukraine, prices for service have risen sharply in several countries. This includes the United States, where most of Bitcoin’s computing power is concentrated, as the Cambridge University Mining Map shows.

According to Statesmanthe price per kilowatt-hour in the United States has been rising steadily since last year. At the industrial level alone, the cost of electricity rose from $0.072 to $0.074, a slight increase that could threaten the stability of miners as the market remains sensitive.

Hashrate is also declining

A confluence of negative factors has influenced the decline in hashrate, or the computing power used to process transactions on the Bitcoin network, and miners’ income.

According to Braiins, since last November 16, this indicator. has ceded by 13%.from 265 exahashes per second (EH/s) a fortnight ago to 235 EH/s at press time.

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Reference Binance countries

This figure is important because, in addition to difficulty, hashrate is also often used as a measure of miners’ level of participation in the Bitcoin network.

The graph shows a decrease in bitcoin hashrate. The figure shows a 13 percent decrease from 265 exahashes per second (EH/s) a fortnight ago to 235 EH/s on Nov. 27, 2022.
The computing power used to process transactions on the bitcoin network has also steadily decreased. Source: Braiins Mining Insights.

And this is precisely, as mentioned above, the crisis of the FTX collapse and its repercussions on the market, has been extrapolated to bitcoin miners.who (along with the network nodes) keep the decentralized protocol alive.

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Therefore, if there is no certain recovery in the short term, the price of bitcoin is likely to enter a downward spiral From the action of the miners.

As it happens, if traders start selling their holdings in desperation over the crisis, certainly the price of cryptocurrency could suffer an even deeper collapse.

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