Bitcoin hashrate drops 9.95% after reaching record high

Bitcoin’s (CRYPTO:BTC) computational power has fallen by 9.95% just days after the network reached an all-time high hashrate of 693 exahashes per second (EH/s). 

Following this peak, Bitcoin’s mining difficulty also increased by 3.58%, placing additional pressure on miners. 

In the nine days since the record hashrate, the network has seen a drop of 69 EH/s, bringing the total down to 624 EH/s. 

Bitcoin miners are facing mounting economic challenges, as revenues have dropped significantly following the fourth Bitcoin halving, which reduced the block subsidy from 6.25 BTC to 3.125 BTC. 

Along with the subsidy reduction, on-chain transaction fees remain at low levels not seen since 2022. 

The current fee for high-priority transactions stands at 3 satoshis per virtual byte (sat/vB), which amounts to approximately $0.25. 

This decrease in fees, combined with a recent drop in Bitcoin’s price, has led to a sharp decline in mining profitability. 

As a result of these factors, the hashprice, or the value of 1 petahash per second (PH/s) per day, has slid significantly. 

The 9.95% decline in hashrate underscores the growing difficulties that miners face, with many operations struggling to remain profitable. 

Only the most efficient mining operations are likely to survive this period of reduced rewards and low transaction fees, potentially leading to further consolidation in the industry. 

The combination of increasing difficulty, reduced fees, and declining profits continues to challenge Bitcoin miners. 

With profitability waning, the network could see further reductions in hashrate, which may impact the decentralization of mining power. 

For now, Bitcoin’s hashrate remains high compared to historical averages, but the recent dip serves as a reminder of the ongoing economic pressures within the mining ecosystem. 

At the time of writing, the Bitcoin (BTC) price was $62,075.01.