The most important metric for Bitcoin miners is falling

Bitcoin’s hashprice (BTC), a metric that measures the daily income that a miner can expect for each Hashit unit contributed to the network, has experienced a sustained fall from mid -January 2025 to stagnate at the current levels.

According to hashrat index data, at the time of this article, that measurement is 0.044 dollars per terahash per day ($/th/day), coming from 0.060 $/th/day to January 17. This situation has turned on the alarms among the miners, who depend on this metric for Evaluate the profitability of its operations.

One of the factors behind this fall is the increase in Bitcoin’s total computing power (hashrate) that, as Cryptonoticia reported, resulted in the beginning of the Zettahash era in the network created by Satoshi Nakamoto.

A greater hashrate is accompanied by more difficulty when it comes to undermine, reducing hashprice, since it increases competition and decreases rewards per unit of hash. When the difficulty grows, usually by a greater global hashrate due to more miners or more efficient equipment, More hashes are required to undermine a block.

That reduces the probability that a miner with a fixed hashrate will find blocks, reducing revenues by Terahash per second (th/s) and, consequently, hashprice, which measures daily income by TH/S. For example, an increase in global hashrate of 10% can reduce hashprice in BTC by 10%, if other factors remain constant.

However, This relationship is not absolute: A rise in the price of Bitcoin can compensate for the fall by increasing the value in dollars of the rewards, while peaks in transaction rates also mitigate the impact.

On the other hand, in a report published on April 15, Jaran Mellerud, CEO of Hashlabs, has described the hashprice as «The most important metric for Bitcoin miners»highlighting its crucial role in strategic decision making in an increasingly competitive sector.

The hashprice: Bitcoin’s mining pulse according to Mellerud

The hashprice combines multiple variables of the Bitcoin ecosystem: the price of Bitcoin, transaction rates, block subsidy and the difficulty of the network. According to Mellerud, “it is the only metric you need to calculate the income of the miners. Consolidates all the factors that affect the income of the miners in a single powerful metric ».

This indicator allows miners not only to estimate their daily income, but also «Decide when to sell your minted bitcoins and evaluate the viability of new investments in equipment, ”writes Mellerud.

Unlike other metrics, such as the direct cost of mining or the total hashrate of the network, the hashprice offers an integral vision of income per unit of computational power, which makes it a key reference for decision making.

An analysis of the fall of hashprice, by Mellerud

JARAN MELLERUD identifies several events and trends that have influenced the fall of hashprice, not only since mid -January, but, extending that analysis to the prohibition of mining in China, in 2021.

China’s decision in 2021, which caused a fall of almost 50% in the hashratate of the network, according to Mellerud’s data. This reduction in competition decreased the difficulty of mining, which was initially A substantial increase of hashprice during the summer of 2021.

However, benefited by that period of high profitability, according to Mellerud, the Chinese prohibition led to miners outside that country to proliferate in other regions. Those new miners ended raising the total computational power of the networkalso promoting mining difficulty and, ultimately, reducing hashprice.

Mellerud accompanied his analysis with the following graph of the hashprice drop measured in BTC:

Second, Hashlabs CEO also considers that Bitcoin hashrate has grown constantly, driven by better access to energy, capital and more efficient machines, which promoted the descent of Hashprice. Mellerud expects that trend to persist in the future.

“The only certainty about the hashrate of the network is that it will increase in the long term,” he said. This growth in difficulty has diluted income per unit Hash, affecting the profitability of miners.

Another relevant factor indicated by the Executive is the halving occurred in April 2024, since the reduction of block subsidy caused an abrupt fall in the hashprice. In this sense, Mellerud points out that, although the halvings will continue to occur every four years, their impact on hashprice will decrease over time, since the Transaction rates will gain greater relevance in the income of the miners.

Finally, Mellerud warned that miners with access to expensive electricity or obsolete equipment face greater risks in this environment. “Miners operating with narrow margins should act quickly to reduce costs or update their machine fleets,” he recommends.