BTC at 65K! The latest impact of Bitcoin's halving: Miners' profits sharply decrease, and the currency price needs to be maintained above 80K.

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The Current Impact of Halving Rewards on Miners

In May, the profitability of Bitcoin mining significantly decreased due to the fourth halving event. This halving reduced the mining reward per block from 6.25 BTC to 3.125 BTC, intensifying Bitcoin's scarcity, with a total supply cap of 21 million.

Sudden Drop in Mining Revenue

Initially, the excitement surrounding the halving and the debut of the Bitcoin symbol Rune kept mining revenue at a relatively high level.

However, this situation didn't last long as the total revenue from block rewards and transaction fees dropped to a new low of $26.3 million on 5/1. Before the halving, Bitcoin miners were earning an average of around $6 million per day, and data from Blockchain.com shows this sharp decline in revenue setting a worrying trend for the future of Bitcoin mining.

Ironically, on the same day as the mining reward halving on 4/20, Bitcoin reached a historical daily high of over $1.07 billion, showcasing the volatility of cryptocurrency returns, requiring miners to quickly adapt to changing environments.

How Bitcoin Miners Maintain Profitability

Anticipating the decrease in income, global mining operations have been readjusting. Without these strategic adjustments, miners would have to rely entirely on Bitcoin's market value to sustain operations. According to CryptoQuant CEO Ki Young Ju, Bitcoin's price would need to stay above $80,000 to remain economically viable under the new reward structure. However, his argument is based on data from U.S. miners and may differ from the global reality.

Additionally, using data from Macro M Square for evaluation, the cost data as of 5/4 shows the cost per Bitcoin to be as high as $93,045. This data source is from a study by Cambridge University, which uses data provided by specific mining pools and may not necessarily reflect a global overview of reality.

However, the outcome should bring joy to many as the current market price significantly lags behind costs.

The Future of Investment in Mining

Facing these challenges, companies like Bitfarms have been actively investing in upgrading equipment. Bitfarms has allocated $240 million to triple its hash rate. Bitfarms CFO Jeffrey Lucas detailed this strategy in a recent interview with Cointelegraph: "The upgrade is transformative, with our hash rate increasing to 21 EH/s, operational capacity up 83% to 440 MW, and efficiency improved by 40% to 21 w/TH." Despite these efforts, Bitfarms experienced its lowest month of Bitcoin earnings in April over the past two years, highlighting the severe impact of the halving event.

Cointelegraph suggests that after each halving, there is a period where the Bitcoin price remains below the profitable price for miners. This period is influenced by uncertainty, increased sales of mining equipment, and the closure of many small and individual miners.