Bitcoin (BTC) Hashprice Plunges to All-Time Low of $44.31/PH/Day After German Government Transfers Exacerbated Last Week\'s Price Drop

The current landscape of consecutive negative difficulty adjustments — three in a row — mirrors that of the summer of 2021, a period marked by significant turbulence

Bitcoin’s hashprice fell to an all-time low last week as the BTC price dropped and miner revenue decreased.

Hashprice, a metric that represents the mining revenue on a per terahash basis, is used to gauge the profitability of Bitcoin mining. Last week, hashprice dropped to $44.31 per petahash per day (PH/day), according to data from crypto mining analytics firm Hashrate Index.

The lowest hashprice recorded before this was during the summer of 2021, when China’s government banned Bitcoin mining and trading, causing a mass exodus of miners from the country. At the time, hashprice fell from 379 PH/day to 203 PH/day.

However, hashprice recovered quickly after the ban, as miners relocated to other countries and began setting up new mining operations. By the end of 2021, hashprice had reached a new all-time high of $1,000 PH/day.

This year, the decrease in miner revenue is largely due to the bear market, which has seen the price of Bitcoin fall by more than 70% from its all-time high. As the price of Bitcoin decreases, so does the amount of money that miners earn from each block that they mine.

Moreover, the difficulty of mining Bitcoin has also decreased for three consecutive periods, which puts further downward pressure on miner revenue. When the mining difficulty decreases, it becomes easier to mine Bitcoin, and thus, the amount of mining reward per terahash decreases.

Overall, the decrease in hashprice is a sign of the current bear market, and it is likely to continue as long as the price of Bitcoin remains low and the mining difficulty continues to decrease.

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