Bitcoin (BTC) miners are likely breathing a sigh of relief this week, since mining is finally becoming significantly more profitable again as the Bitcoin (BTC) price rises and mining difficulty plunges.
Miners went through some hard times after the block halving, with the hash rate crashing from 136 EH/s to 81 EH/s, representing over 50 EH/s of mining equipment being turned off. This was due to the block halving cutting mining revenues by 50% in combination with the price of Bitcoin (BTC) dropping from $10,000 to $8,500 right before the halving, which cut mining revenues even further.
Now Bitcoin (BTC) has been steadily climbing, and it is pushing up against the $10,000 level, with a breakout above $10,000 seeming likely.
More importantly, mining difficulty has dropped from 16.1 trillion to 13.7 trillion, which is a 15% drop. This means that the same unit of hash rate, such as 1 TH/s, now mines 15% more Bitcoin (BTC), which partially offsets the 50% loss in revenue from the block halving.
The net result is that a fraction of the mining rigs which were forced to shutdown due to lack of profitability after the halving are coming back online, and the hash rate has now risen to 100-110 EH/s.
Now miners are waiting and watching to see if Bitcoin (BTC) will break out above $10,000. If Bitcoin (BTC) can rally to $15,000 or so, then perhaps the mining industry can completely recover, and all the rigs which were forced to shutdown after the block halving can come back online.