Bitcoin Miner Earnings Decline As BTC Price Drops Sideways

Data shows that growth in Bitcoin miner earnings has slowed over the past week as the price of the crypto has moved sideways.

Bitcoin Miner Earnings Rise Over Last Seven Days But By Only 1.6%

According to the latest weekly report from Arcane Research, BTC mining revenue has now stagnated after observing significant growth recently.

Here is a table showing how the metrics related to Bitcoin miners have changed over the past week:

Looks like the average transaction value has fallen over 15% in this period | Source: Arcane Research's The Weekly Update - Week 31, 2022

As you can see above, the daily Bitcoin miner earnings are around $21.9k right now, about 1.6% more than the $21.5k value from a week ago. This growth is quite small compared to the previous days.

By July 17, revenue had fallen to just $17 million, the lowest figure in a year. However, the value of the metric began to rise shortly after, reaching $21.8 million by July 28.

Compared to that, miner earnings have barely seen any movement in the last week or so. There are two reasons behind this trend.

The first, and the more relevant one, is the fact that the price of Bitcoin itself has encountered stagnation in recent days.

While miners’ block rewards are mostly fixed, the USD value of the BTC they receive is not. Since miners usually pay their operating costs in dollars, this USD value is the most important metric for them.

A lack of improvement in the price of crypto means that the daily miner earnings also do not see any significant movement.

The other reason behind the trend is the 1.7% increase in mining difficulties that the Bitcoin network observed last Thursday.

The difficulty depends on a metric called “hashrate”, which is a measure of the total computing power connected to the network.

As the hashrate rises, so does the difficulty of the blockchain as the BTC network aims to keep the block production rate constant (which would otherwise explode as more miners join the chain).

The hash rate has started to pick up a bit lately, which has resulted in the latest upward adjustment in the mining difficulty. As the diagram below shows:

The value of the metric has recovered a bit from the plunge recently | Source: Arcane Research's The Weekly Update - Week 31, 2022

BTC price

At the time of writing, Bitcoin’s price is hovering around $23k, up 1% in the last week.

BTC has erased its gains from two days ago | Source: BTCUSD on TradingView

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research