Bitcoin mining difficulty has set a new record high, with an increase of 7.56% to 46.84T at block height 782208. The cryptocurrency’s current average hashrate stands at 340.23 EH/s.
This year, the mining difficulty has risen by 30%, while Bitcoin’s price has seen a 70% surge since January. Additionally, according to a report by Hashrateindex, Bitcoin is enjoying a historic Q1 in 2023, with its price rising more than any other Q1 in its short history.
The positive price action revived Bitcoin miners, who were previously struggling to stay afloat. The current USD hash price for Bitcoin is $85/PH/day, a number that would have been considered a nightmare last summer but which is now seen as a godsend.
The hash price average for Q1 2023 ($72/PH/day) may not look much better than Q4’s average ($65/PH/day), but it has made all the difference for some previously margin-starved miners.
Hash-price Revival Benefits Bitcoin Miners
According to the report, miners are faring better than they were at the end of 2022, when thin margins made it difficult for even average-cost miners in the US to break even.
However, the recent rally in BTC’s hash price has improved the situation, giving miners a bit more financial comfort. Despite energy prices remaining high, miners are now making 41% more cash flow from their machines than at the beginning of 2023, which has improved their operating margins.
Some popular Bitcoin mining rigs have also seen changes to their breakeven power costs. For example, the S19 XP 140 TH/s went from $0.115 to $0.165, the S19j Pro 100 TH/s from $0.081 to $0.117, the M50S 126 TH/s from $0.095 to $0.137, and the M30s++ 112 TH/s from $0.08 to $0.115.
The report gives the instance of a miner with average power costs in Texas earning $0.50 a day with an S19j Pro at the end of 2022 but now makes $3.10 a day, with an increased margin of $36.5.
While the hash price revival has given miners more breathing room, they cannot relax. Bitcoin’s hashrate has been growing steadily, which could stunt the current hash price rally if Bitcoin’s price doesn’t keep up.
The price of Bitcoin itself will be highly dependent on the course of the Federal Reserve’s future interest rate changes, any financial system contagion from recent bank runs, and the outlook of the general economy in the year to come.
Nevertheless, the hash price revival has given miners more cushion between their operating margins and breakeven thresholds, but they cannot relax just yet. Bitcoin’s hashrate has been growing steadily, which could impact the current hash price rally if the BTC price doesn’t keep up.
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