Bitcoin’s hashprice has fallen to its lowest level in five years, according to Luxornow sitting at $38.2 PH/s. Hashprice, a term introduced by Luxor, measures the expected daily value of one terahash per second of computing power. The metric reflects how much profit a miner can expect from a certain amount of hashrate. It can be denominated in any currency or asset, although it is usually expressed in USD or BTC.
Hashprice depends on four main variables: network difficulty, the price of bitcoin, the block subsidy, and transaction fees. Hashprice increases with the price and volume of Bitcoin fees, and falls as the difficulty of mining increases.
Bitcoin’s hashrate remains near record levels above 1.1 zh/s on a seven-day moving average. Meanwhile. Transaction fees remain very low, plus mempool.space Quoting a high priority transaction at 25 cents or 2 sat/vb.
This decline in hashprice is taking place alongside a broader pullback in publicly traded bitcoin mining stocks, though many in the sector have business plans away from BTC mining and AI infrastructure.
The Coinshares Mining ETF, WGMI, has fallen 43% from its peak and is trading just below $41.
