In turn, fee income fell to its lowest point since the BRC-20 token standard was introduced

Bitcoin miner profits fell to a yearly low of $816 million in September

02.10.2024 - 09:30

156

2 min

What’s new? In September, bitcoin miners generated $816 million in revenue, the lowest in over a year. According to data from The Block, the total transaction fee revenue for the month totaled just $13,86 million, the lowest since the BRC-20 token standard was introduced in March 2023.

The Block’s data

What else is known? The peak in terms of revenue for participants in the mining of the first cryptocurrency over the past year was reached in March this year at $2,01 billion including fees. That month, the asset updated its all-time high value above $73 500.

Earlier, analysts at JPMorgan Bank also pointed out that the daily profit from mining declined for the third month in a row, while the hashrate for the same period increased by 2% to 643 EH/s. According to experts’ calculations, the daily gross profit from block mining decreased by 6% over the last month to $16 000 per EH/s, which is a local low.

The bitcoin mining difficulty is currently at 88,4 T, an all-time high for the network. The next recalculation, which will take place in a week, is predicted to increase the figure to 88,52 T. At the same time, the hashrate dropped slightly to 628,43 EH/s.

The increase in the difficulty of mining, coupled with a decrease in the reward for mining blocks due to halving, results in lower revenue for miners. Halving has occurred every four years since bitcoin’s launch and halves the reward for mining a block, in April this year it was cut to 3,125 BTC per block.

These factors may be offset by the rising value of the asset itself, but it has lost 3,1% over the past week and is trading at $61 842. During the last 24 hours, in moments the price has dropped to $60 300.

Analyst Colin Wu attributed such a sharp decline to tensions in the Middle East. Thus, the IDF reported that Iran fired about 180 rockets at Israel. The world media assessed this event as a turning point in the confrontation between the two countries.

According to CoinGlass, positions worth $526,61 million were liquidated over the day, of which long positions accounted for $453,14 million.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy