Bitcoin (BTC) miners collected $60 million on a thirty-day average timeframe as of May 5, showing the first signs of recovery after last month’s severe revenue drop that followed mass miner outages in China’s energy-rich provinces.
In April, coal mining accidents and subsequent inspections in Xinjiang lacerated energy supply to the regional cryptocurrency mining industry. That forced miners to turn off their Application Specific Integrated Circuit (ASIC) hardware, which exclusively generates computing power to secure and put the “work” into Bitcoin’s proof-of-work.
According to data from Blockchain.com, Bitcoin Mining revenue fell from its 30-day average peak of $60 million — recorded on April 16 — to as low as $57.08 million on May 2. The given resource collects miners’ data from block rewards and transaction fees paid to miners.
The drop in profits coincided with a decline in the Bitcoin network’s hash rates, signifying that many ASIC hardware went offline after losing their chief energy source. The total hash rate per second (7-day average) plunged from a record high of 172 EH/s on April 16 to 131 EH/s on April 23, a drop of roughly 30%.
It has since recovered to 168 EH/s on May 5, indicating that miners are resuming their bitcoin operations, following a considerable mining difficulty drop four days ago.
Effects on Bitcoin spot rate
Bitcoin prices suffered significant declines following China’s outages.
The benchmark cryptocurrency was already correcting lower after establishing a historical peak near $65,000 on April 14. The China FUD apprehensively accelerated the sell-off, causing the BTC/USD exchange rate to plunge to as low as $50,591 as of April 25.
Bitcoin’s price and hash rate drop occurred almost simultaneously, feeding another evidence about a higher positive correlation between the two metrics.
Simply put, the…