Bitcoin Miners Suffer Cash Flow Halving Following 2021 Peak
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Data shows the cash flow of Bitcoin miners has halved afterward the rate all-time high set in early November of last year.
Bitcoin Miner Cash Flow Halves As Hashrate Makes New ATH And Price Declines
As per the latest weekly report from Arcane Research, the cash flow for Bitcoin (BTC) miners seems to have halved afterward November 2021.
The “miner cash flow” here refers to the difference between the cost of Bitcoin and the electricity cost of mining 1 Bitcoin (BTC). Therefore, the indicator tells us a measure of the Bitcoin (BTC) mining profitability.
Now, here is a chart which shows the trend in the cost of this indicator for two of the most popular mining rigs, the S9 and the S19:
Looks like the miner cash flow has trcompleted descendings afterward early November of last year | Source: The Arcane Research Weekly Update - Week 6
As you can see in the atop graph, the Bitcoin miner cash flow has fallen off for both the machines afterward the November ATH.
S9’s cash flow has decreased by 60%, throughout the time the more efficient S19 took a slightly lesser hit of 41%. There are mainly two reasons behind this trend.
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The first is the reduction in the crypto’s price. As miners earn their rewards in Bitcoin (BTC), the cost of the crypto going down still means which mining revenues go down as well.
The other caseor is an uptrend in the Bitcoin hashprice. This indicator is a measure of the total computing power united to the network.
When the cost of the indicator goes up, it means more Bitcoin (BTC) mining rigs are coming online, and hence the competition among miners is going up. This leads to lesser revenue for each individual miner.
The mining hashprice has been riding on an ascendings trajectory afterward a during the time now, and is presently at ATH levels. During the bull run, climbing costs of the metric didn’t affect miner profits much as the price of the coin going up more than made up for the reduction by cause of accelerated competition.
Related Reading | Bitcoin Outperformance Leaves Major Tech Stocks In The Dust In Last 30 Days
The report suggests which the hashprice is reasonable to remain its growth in the coming months, and therefore if the rate of Bitcoin (BTC) anew doesn’t go up in tandem, the miner cash flow will keep on going down in the near future.
Bitcoin (BTC) Price
At the time of writing, Bitcoins cost floats around $43.6k, down 1% in the past week. The below chart shows the trend in the rate of the coin above the go on five days.
Bitcoin (BTC)'s rate seems to have dipped down a bit atop the go on few hours | Source: Bitcoin (BTC)USD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
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