News

Bitcoin Miners Face Challenge As Hash Price Slumps to Fresh Lows

Bitcoin mining faces profitability concerns as hash price nears record low, despite a surge in network hash rate.
Published by
Bitcoin Miners Face Challenge As Hash Price Slumps to Fresh Lows

In the constantly evolving landscape of Bitcoin mining, there’s a pressing challenge emerging for miners worldwide. According to Bloomberg, a critical metric, the hash price, is nearing a record low, spelling potential financial troubles for mining operations. The stagnating Bitcoin price, coupled with heightened competition, has put this cornerstone of the cryptocurrency world under the microscope.

Advertisement

Surging Hash Rate vs. Slumping Revenue

Interestingly, while the hash price is plummeting, the Bitcoin network’s hash rate is experiencing an opposite trajectory. Over the past year, the hash rate has surged by an impressive 80%, reaching a peak of 414 exahashes per second (EH/s) on August 18. This signifies more computational power and resources being poured into the network. Yet, the diminishing returns in terms of revenue are a concerning juxtaposition.

BTC/USD hash rate vs. price, Source: Blockchain.com

 

A renowned market analyst, Dylan LeClair, shed light on the situation, highlighting that newer, more efficient mining rigs are constantly being developed. However, he also emphasized the importance of the Bitcoin price catching up. According to LeClair, for mining to remain lucrative at such elevated hash rates, Bitcoin prices need to adjust upward.

Advertisement

Struggle to Maintain Profitability

The Bitcoin mining industry has been facing increasing strain as the hash price, a measure of the revenue earned per terahash per second (TH/s) daily, slumped to $0.060. This downturn in mining revenue is reminiscent of the period following the FTX collapse in late 2022. 

With the Bitcoin price stagnating at $26,118.15, the revenue for miners isn’t promising, especially compared to earlier this year. During the Bitcoin Ordinals inscription frenzy in May, the demand for block space surged, driving the hash price to nearly double its current rate.

 

While Bitcoin remains a dominant force in the cryptocurrency market, with a market cap of over $508 billion, the internal dynamics of its mining operations present a puzzle. The interplay between hash rates and hash prices will likely define the future profitability and sustainability of Bitcoin mining. As the industry awaits a potential price adjustment, miners worldwide grapple with the ever-changing challenges of cryptocurrency.

Advertisement
Share
Sunil Sharma

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Analyst Slams S&P’s ‘B-’ Rating for Strategy Inc, Says Bitcoin Treasury Model Is “Misunderstood”

Crypto market analyst Adam Livingston has sharply criticized S&P Global Ratings after the agency assigned…

October 28, 2025
  • News

Metamask Airdrop Countdown Begins as Wallet Team Registers Token Claim Domain

In a fresh development, a newly registered claim domain has led to speculations that the…

October 27, 2025
  • News

$2.5T Citigroup Partners With Coinbase to Enable Stablecoin Payments

Citigroup, a top U.S. bank with $2.5 trillion asset under management has partnered with Coinbase.…

October 27, 2025
  • News

Who Will Be the Next Fed Chair? Scott Bessent Confirms Final Five Candidates

U.S. Treasury Secretary Scott Bessent has confirmed the final shortlist of contenders to replace Jerome…

October 27, 2025
  • News

Mt. Gox Delays Repayments to 2026 as Trump-Backed American Bitcoin Adds 1,414 BTC

Mt. Gox has once again pushed back its long-awaited Bitcoin (BTC) creditor repayments by a…

October 27, 2025
  • News

Crypto ETFs Attract $1B in Fresh Capital Ahead of Expected Fed Rate Cut This Week

Crypto ETFs record nearly $1 billion in weekly inflows. This marks one of the strongest…

October 27, 2025