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13 Jun 2022
Bitcoin on-chain summary: Hashrate at all-time high makes for hard competition among bitcoin miners
The same day the bitcoin price fell towards the low 20s, the hashrate reached an all-time high. There have been better times for the bitcoin miners.
Daily miner revenues continue staying depressed at $27 million. Still, this number is a 7-day average that looks backward. The number is likely closer to $23 million now as the bitcoin price has fallen to $22,500.If you think the bitcoin hodlers are struggling now, you should know miners are struggling even more. Their profitability is not only being squeezed by the plummeting bitcoin price but also by the record-high competition in the mining industry as the 7-day average hashrate reached an all-time high of 231 EH/s on Monday.Source: Blockchain.comThe combination of the falling bitcoin price and increasing hashrate means that miners must compete harder for lower-value block rewards. We see this dynamic play out among the public miners, as they have produced less bitcoin than expected during the spring.Source: BytetreeWe also see an 18% decline in transaction fees per day. The fees are now sitting at $370,000 per day, close to the lowest level since July 2020.The low transaction fees are surprising, considering we saw a record-high number of bitcoin outflow from exchanges on Monday.