Income from Bitcoin mining dropped significantly in May due to the impact of the fourth Bitcoin halving event.
The Bitcoin halving mechanism is designed to increasingly limit the issuance of 21 million Bitcoin (BTC) spread over decades. The fourth halving event on April 20 reduced the mining reward to 3.125 BTC from 6.25 BTC.
While the initial hype surrounding the halving and launch of Bitcoin Runes temporarily sustained Miners' daily income, a sharp drop in revenue was recorded in May. On May 1, the total Revenue earned from block rewards and transaction fees fell to a new low of $26.3 million.
In contrast, Bitcoin miners earned an Medium of about $6 million per day before the halving, according to data from Blockchain.com.
All remaining days in May also recorded similar revenue patterns, signaling a new normal in Bitcoin mining revenue. Coincidentally, mining revenue peaked on April 20, marking an All-Time-High daily earnings of over $107 million.
Anticipating this significant decline, miners around the world have reorganized operations to remain profitable in the next phase of the Bitcoin economy. Otherwise, Miners will have to rely solely on Bitcoin's high market value to support operations.
CryptoQuant CEO Ki Young Ju has calculated that Bitcoin needs to hold above $80,000 for Miners to continue mining profitably after the halving under current conditions. However, most Miners have taken proactive measures to upgrade their mining equipment to reduce long-term operating costs while remaining competitive.
