Bitcoin Mining Revenue Fell To An Eleven-Month Low In May.

Bitcoin miners had a bad month in May, with revenue and profitability plummeting. However, hash rates remain strong.

As the crypto winter deepens, Bitcoin (BTC) mining revenue and profitability have continued to fall in synch with the asset’s price.

May has been one of the worst months in recent memory for Bitcoin miners, with revenue and profitability continuing to plummet. According to data from Ycharts, which sourced data from Blockchain.com, Bitcoin daily mining earnings fell by as much as 27% in May.

The analytics company recorded daily revenue of $40.57 million for BTC miners on May 1, but it had dropped to $29.37 million by the end of the month. On May 24, daily mining revenue fell to an eleven-month low of $22.43 million.

Daily mining revenue peaked in April 2021 at about $80 million, but has since declined 62% to current levels.

According to Bitinfocharts, mining profitability, which is measured in daily dollars per terahashes per second, has reached its lowest point since October 2020. Mining profitability for 1 Th/s is presently $0.112 per day, according to the crypto metrics source.

Furthermore, the metric has down 56% since the start of the year and is down more than 75% from its 2021 highs of $0.450 per day per Th/s.

However, according to Bitinfocharts, Bitcoin network hash rates remain high, with the current daily average at 211.82 exahashes per second. On May 2, the value was little over 250 Eh/s, which was a 16% drop from its all-time high.

High hash rates but poor profitability could indicate that the Bitcoin mining industry is far more competitive than previously thought. Miners have turned off their rigs in previous bear markets as asset prices fell and operations became momentarily unprofitable.

According to Glassnode, the ratio of miners to exchange flows has just reached a four-month high, indicating that they may be preparing to sell some to meet the declining revenue.ac

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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