Recent data indicates that the Bitcoin mining hashrate has dropped by 11%, leading to a significant decrease in miner profitability to the lowest point in three years.

Challenges Faced by Bitcoin Miners

CryptoQuant community manager Maartunn highlighted the current underpayment of Bitcoin miners based on the “miner profit/loss sustainability” metric, which assesses the fairness of miner revenues. A chart depicting the trend in this metric over recent years illustrates the decline in profitability.

Miners earn income from block rewards and transaction fees, which are impacted by market conditions. The profitability of miners was notably high during periods of price surges and increased network activity.

However, recent events, including the Halving last month, have led to a sharp decline in profitability for miners. The reduction in block rewards combined with lower transaction fees has put significant pressure on miners’ finances.

As a result, some miners have already scaled back operations, leading to an 11% decrease in the Bitcoin hashrate. This decrease in mining power indicates the challenges faced by miners in the current economic environment.

Bitcoin Price Movement

Bitcoin’s price has fluctuated recently, with a rally pushing it above $63,000 before dropping back to $61,700. Market conditions, including mining profitability, continue to influence the cryptocurrency’s value.