Bitcoin miner revenues show signs of decline after halving event.

According to CryptoPotato, almost a month after the fourth Bitcoin halving, the first signs of a decrease in miner revenues are slowly emerging. The drop in the network's hash rate is a clear indicator of this trend, potentially signaling miner capitulation, where less efficient miners give up due to decreased profitability. The 30-day moving average hash rate previously peaked at 630 exahashes per second (EH/s) but has now dropped to 606 EH/s. This decrease, although relatively small and brief, is significant as hash rate generally increases, indicating a change in pattern.

CryptoQuant’s analysis revealed instances of rapid hash rate declines, often signaling “miner capitulation.” This term refers to less efficient miners opting out of the process, shutting down their rigs and reducing computing power for mining. They can also reallocate or sell recently mined bitcoins to cover their operating expenses.

The halving event on April 20 halved the block reward to 3,125 BTC, reducing mining production from 900 BTC to around 450 BTC per day. As a result, top Bitcoin miners such as Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf experienced production drops of 6% to 12% in April. These reductions in production coincided with a decline in profitability, or “hash price,” which decreased to $0.049 per terahash per second per day, according to HashRateIndex. This represents a drop of over 73% from the $0.182 TH/s/day level seen near the halving. Such a scenario also poses problems for the price of Bitcoin, as concerns about sales loom amid increasing pressure faced by miners.