Bitcoin Mining Sector Sees Surge in Hash Prices Following Halving Event
The Bitcoin mining sector has experienced challenges with historically low hash prices in recent weeks after the halving event. However, hash prices surged to multi-year highs on the day of the halving, driven by increased fees attributed to Runes.
Glassnode data indicates that the hash price is currently at $51,915 in USD terms and 0.84 BTC, approaching all-time lows. The recent uptick in hash price on May 9 was due to the biggest difficulty adjustment drop since November 2022.
The miner revenue per exahash metric, defined by Glassnode, serves as a tool to measure daily miner earnings in relation to their proportional contribution to network hash power. It is derived by dividing the total miner income, including subsidies and fees, by the current hashrate in EH/s. This data is updated daily, providing insights into the daily revenue earned per 1 EH/s of hash power contributed by miners to the network.
Luxor, a mining pool and hashrate marketplace, released a Q1 2024 report on the state of Bitcoin mining, suggesting that the hash price may have hit its bottom, at least in the short term. The report anticipates an increase over the next five months, based on the expectation of either higher transaction fees or a decrease in mining difficulty.
According to the report, Luxor Hashrate Forward traders predict a rise in hash price over the next five months through either an uptick in transaction fees or a decline in Bitcoin mining difficulty.
Furthermore, Luxor’s hashrate forwards are currently trading above the spot price through October, indicating Contango. This means that the contract prices for these forward contracts are above the current spot price.
The report also highlights that hashrate traders are optimistic about transaction fees in the short term, predicting an increase. The potential scenarios for increased fees could include continued Bitcoin price rally leading to higher adoption and network congestion, or a surge in Inscriptions and Runes, which could drive up fees.
