Bitcoin Hashrate Hits New Peak as Miners Face Profitability Squeeze
Bitcoin’s (BTC) hashrate has soared to an all-time high, with the network’s seven-day moving average reaching 833 exahashes per second (EH/s), marking a 9% rise from 767 EH/s just days ago, according to Glassnode data.
This surge comes despite a slowdown in mining hardware pre-orders, as reported by Miner Mag. Many firms bulked up their mining fleets ahead of Bitcoin’s April 2024 halving, but with block rewards now reduced, some are scaling back future expansions.
Hashrate—an essential measure of Bitcoin network security—has grown over 40% since the halving, reflecting the continued expansion of mining operations. However, miner profitability has remained under pressure due to historically low transaction fees.
Currently, a high-priority Bitcoin transaction costs just 5 sat/vB ($0.69), one of the lowest levels in years. With fewer fees collected, miners are struggling to offset rising operational costs, highlighting a key challenge in Bitcoin’s long-term economic model.
The next network difficulty adjustment, set to take place in four days, is projected to increase by over 6%, further intensifying competition among miners.
With fees playing a growing role in Bitcoin’s long-term security model, questions remain about whether the network can sustain such high hashrates without higher transaction revenue.
