Bitcoin Miners See Relief as Hashprice Rises to One-Month High Amid Strong BTC Price and Higher Fees

Bitcoin miners are experiencing a boost as Hashprice, a key measure of mining profitability, reaches its highest levels since mid-December, driven by a combination of rising transaction fees and the growing price of Bitcoin (BTC).

Hashprice, a metric created by Luxor, estimates the daily earnings of miners based on their contribution to Bitcoin’s hash power. It reflects the expected value of 1 TH/s of hashing power per day. According to Glassnode, hashprice is currently sitting at $62 PH/s, marking a significant recovery.

The primary driver behind the increase is Bitcoin’s price, which has surged to over $100,000—a 56% increase over the past three months—providing miners with much-needed relief. Alongside this, transaction fees have risen, reaching approximately 12 BTC per day, the highest in over a month. This rise in fees is partly due to the uptick in network inscription activity.

The halving event in April 2024, which reduced Bitcoin mining rewards by half, initially led to a drop in hashprice from around $115 PH/s. Following the halving, miners faced challenging conditions, with many seeing a downturn in share price performance through most of 2024. For much of the year, mining revenues remained below the 365-day simple moving average (SMA). However, November 2024 marked a recovery, with revenues now above the SMA, signaling a potentially bullish trend.

Despite network difficulty rising due to all-time highs in hashrate, which makes mining more challenging and less profitable, the combination of a high Bitcoin price and increased transaction fees has provided support to miners.

Andre Dragosch, European Head of Research at Bitwise, shared his perspective with CoinDesk, noting that miners are in a much healthier financial position compared to last year.

“We’ve seen a slight dip in network hashrate since its peak in early January, but Bitcoin’s price surge and an increase in transaction volumes have led to a recovery in hashprice,” Dragosch explained. “This recovery in hashprice should encourage miners to further ramp up their hash rate.”

Dragosch also pointed out that Bitcoin miners are well-capitalized and have been accumulating Bitcoin at a steady pace, suggesting that they are selling less than they are mining on a daily basis. This indicates that miners are taking a more strategic approach, building reserves rather than liquidating assets.

As Bitcoin prices remain strong and transaction fees continue to support mining revenues, miners are expected to maintain a positive outlook for the near future.