Bitcoin miners are experiencing a significant decline in profitability as the hashprice metric drops below $50 for the first time since April. Despite Bitcoin's price exceeding $110,000, miners are earning less than when the cryptocurrency was valued at $90,000. This decline is attributed to the upcoming 2024 halving and reduced on-chain activity, which have decreased block rewards and transaction fees.
The increased network hashrate has further diluted miner rewards, prompting some companies to diversify. Firms like CleanSpark and Cipher Mining are investing in AI and cloud computing to mitigate financial losses. These strategic shifts highlight the industry's adaptation to the challenging economic environment.
Bitcoin Miners Enter 'Chill Zone' as Hashprice Falls Below $50
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