Bitcoin Mining Revenue Hit 11-Month Low Amid Rising Difficulty

Bitcoin Mining Revenue facing worst in 11 months as difficulty climbs

Why Bitcoin Mining Revenue is Not Profitable 

Bitcoin miners recently experienced their lowest revenue-generating month since September 2023, highlighting the ongoing challenges within the industry. In August, miners earned $827.56 million, a significant decline of over 10.5% from the $927.35 million reported in July. Despite this drop, there was a silver lining as the August revenue was still 5% higher compared to the same period last year, according to data from Bitbo.

The reduction in revenue can be attributed to several factors, including a decrease in the number of Bitcoin Mining during the month. August saw miners extract approximately 13,843 BTC, a slight decrease from the 14,725 BTC mined in July. 

To further put this situation into perspective, the August revenue figure represents a staggering 57% fall from the peak seen in March 2024. During that month, miners earned nearly $1.93 billion, which coincided with Bitcoin reaching its all-time high price of over $73,500 on March 13. This sharp contrast between the peak earnings in March and the current figures underscores the volatility and challenges faced by Bitcoin miners.

Despite these hurdles, there is a glimmer of hope for miners. While the price of Bitcoin hovered around $25,000 throughout August, it has since more than doubled, currently trading at $57,315. This price increase could potentially improve miner revenues in the coming months, providing some relief amid the current challenges.

However, the rising Bitcoin price hasn’t been sufficient to fully offset the increased difficulty in mining. The level of mining difficulty hit an all-time high of 89.47 trillion in August, up from 86.87 trillion in July. 

Another factor adding to the revenue drop is the decline in transaction volumes. The median fees that miners earn as part of the block reward made up just 2% of the total in August. Moreover, the daily confirmed transaction 30-day average reached a year-to-date peak of nearly 631,648 on July 31, but fell to 594,871 by the end of August. These decreases in transaction volumes and fees are further squeezing miners’ profits.

Overall, August proved to be a challenging month for Bitcoin miners, with revenues hitting a low not seen since September 2023. While the rising Bitcoin price offers some hope, the increasing difficulty of mining and declining transaction volumes continue to pressure profits. As a result, miners are exploring new avenues, such as AI, to bolster their earnings during these tough times.

Why Bitcoin is Going Down Today?

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