Bitcoin ( BTC ) miners have raised $60 million in an average of thirty days since May 5, showing the first signs of recovery after a severe drop in revenue last month that followed massive shutdowns of miners in China's energy-rich provinces.
In April, coal mine accidents and subsequent inspections in Xinjiang hurt energy supplies to the regional cryptocurrency mining industry. This forced miners to shut down ASIC hardware that only generates computing power in order to secure and put "work" into Bitcoin's proof of work.
According to data from Blockchain.com, bitcoin mining revenue fell from an average 30-day peak of $60 million - recorded on April 16 - to just $57.08 million on May 2. The resource collects miners' data from block rewards and transaction fees paid to miners.
The drop in profits coincided with a drop in the hash rate of the Bitcoin network, meaning that many ASIC miners went offline after losing their primary source of energy. The total hash rate per second (seven-day average) fell from a record high of 172 exahash per second on April 16 to 131 EH / s on April 23, a drop of about 30%.
It has since recovered to 168 EH / s on May 5, indicating that miners are resuming bitcoin operations after a significant drop in mining difficulty four days ago.
Bitcoin prices have fallen significantly after supply disruptions in China.
The benchmark cryptocurrency has already corrected the decline after setting a historic peak near $65,000 on April 14. China's FUD - fear, uncertainty and doubt - fearfully accelerated the sell-off, causing the BTC / USD exchange rate to fall to just $50,591. April 25.
The drop in bitcoin price and the blending rate occurred almost simultaneously, providing further evidence of a higher positive correlation between the two indicators.
Simply put, the mix rate represents the processing power of the bitcoin network. This means that the higher the hash rate, the higher the theoretical cost of an "attack" on Bitcoin, making this metric synonymous with network security.
Bitcoin's price has recovered to just over $55,000 since May 5, which is consistent with the hash rate, meaning the network reset is helping to keep the cryptocurrency's dominant upward trend going.
More positive headwinds come from predictions about the difficulty of bitcoin mining. For example, data from BTC.com shows that it should rise by a modest 1% in the next two-month (or 2016-block) adjustment on May 13.
Network difficulty, which shows how difficult it is for nodes in the bitcoin network to solve the equations necessary for mining operations, fell 12.6% on May 2. Bitcoin sell-off on the producer side.
Meanwhile, with an upward correction more likely and mining activity on the bitcoin network increasing, the long-term outlook for the cryptocurrency remains upbeat.
