Data: Bitcoin miners’ profit margins remain under pressure as revenue falls below production costs

Odaily reports that Bitcoin miners’ revenue has been declining over the past year, with the 7-day moving average daily revenue currently around $30 million, significantly lower than the over $50 million level seen last summer. Among this, transaction fee contributions have dropped to less than $250,000 per day, which is almost negligible compared to the block subsidy.

Meanwhile, the Bitcoin price is around $62,500, below the estimated production cost of approximately $78,000 as calculated by JPMorgan. This state of the price being below production costs has persisted for five months, the longest period in this cycle. Historically, the production cost has often been viewed as a soft bottom for Bitcoin’s price.

It is currently estimated that about 20% of miners are operating at a loss at the current price level, and the pressure is also beginning to reflect on the network level. Over the past six months, the sensitivity of mining difficulty to Bitcoin price has risen to 0.62, indicating that high-cost miners are increasingly inclined to switch their mining machines on and off based on price fluctuations rather than continuing to mine at a loss.

In the second week of June, Bitcoin mining difficulty decreased by 10%, marking the second time this year that a reduction of such magnitude has occurred. A similar scale of adjustment was also seen in the first quarter, with both instances happening during periods when the price remained below production costs, suggesting that pressure on the miners’ side is intensifying. (The Block)