Hashprice, a metric invented by Luxor that measures the profitability of mining, estimates miners’ daily income relative to their estimated contribution to the Bitcoin network’s hashing power. In other words, it is the expected value that miners can expect from 1 TH/s of hash power per day.
According to Glassnode, the hash price is hovering above $62 PH/s, around the highest level since mid-December.
What is driving the rise in hashish prices? Well, bitcoin (BTC) has surged to well over $100,000, up 56% in three months, giving miners some relief. The network has also seen a slight increase in miner fees recently, around 12 BTC per day, the highest amount in over a month, driven in part by the network’s enrollment activity.
Due to the April 2024 halving, when the mining premiums were halved, the hash price had dropped from around $115 PH/s.
As a result of the halving, miners struggled with share price appreciation on average last year; while for most of 2024, mining revenues were below the rolling 365 simple moving average (SMA). Only since November has it regained this moving average, which is a historically bullish signal.
While the hash rate, the computational power to mine on a proof-of-work blockchain, recently hit all-time highs, as a result, network issues hit all-time highs, eating away at mining profitability as it becomes harder for miners to receive rewards.
European head of research at Bitwise, Andre Dragosch, exclusively told CoinDesk miners were in a healthier position than last year.
“We have recently seen a decrease in the network’s hash rate since the all-time highs in early January. Meanwhile, the price of bitcoin has risen and the total number of transactions has picked up again. This has led to a rebound in the hash price , which should technically encourage miners to continue increasing their hash rate”.
Dragosch says, “overall, bitcoin miners appear to be well capitalized judging by the continued increase in bitcoin miners since the beginning of the year, which implies that miners are selling less than they are mining on a daily basis”.
