According to Luxor, the Bitcoin hash price has fallen to its lowest level in the past five years, currently sitting at $38.2/s. Hashprice, a term introduced by Luxor, measures the expected daily value of 1 terahash per second of computing power. This metric reflects the return that a miner can expect from a certain amount of hashrate. It can be expressed in any currency or asset, but is usually expressed in USD or BTC.
The hash price is determined by four main variables: network difficulty, Bitcoin price, block subsidies, and transaction fees. The hash price increases according to the price of Bitcoin and the amount of fees, and decreases as the difficulty of mining increases.
Bitcoin’s hashrate remains close to record levels with a 7-day moving average of over 1.1 ZH/s. Meanwhile, Bitcoin’s price is $91,000, down about 30% from October’s all-time high of over $126,000, and network difficulty remains at an all-time high near $152 trillion. Transaction fees are still very low, with mempool.space stating that high-priority transactions are 25 cents or 2 sat/vB.
This fall in hash prices has occurred in parallel with a broader decline in publicly traded Bitcoin mining stocks, even as many companies in the Bitcoin mining industry pivot their business plans from BTC mining to AI infrastructure.
CoinShares mining ETF WGMI is down 43% from its all-time high, trading just below $41.
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