Analysis: Bitcoin Miner Profit Under Pressure, Around 20% of Miners Have Fallen Below Breakeven Point

BlockBeats News, June 25th, Bitcoin Miner Revenue Keeps Sliding, with the current 7-day average daily income dropping to around $30 million, significantly lower than the over $50 million level seen last summer. At the same time, on-chain transaction fee income has fallen to less than $250,000, accounting for a very small proportion of miner's total revenue.

Data shows that JPMorgan estimated the average production cost to be around $78,000. The Bitcoin price has been below the production cost for 5 consecutive months, marking the longest duration of this cycle. It is estimated that about 20% of miners are operating at a loss, with some high-cost miners beginning to frequently start and stop mining machines in response to price fluctuations, leading to increased correlation between network hash rate difficulty and price.

In addition, Bitcoin mining difficulty saw a decrease of about 10% in the second week of June, marking the second such significant pullback this year. Publicly traded mining firms rely more on their balance sheets to sustain operations, having sold over 32,000 BTC just in the first quarter of this year to cover operating expenses. Analysis suggests that in the context of the continued decline in block subsidies and the maintenance of low fee income, miner profit recovery will mainly rely on a rise in Bitcoin price.