- Bitcoin’s hash rate has shown resilience, but BTC has struggled to rise above the $70,000 mark.
- The European regulatory response targets potential market abuse risks associated with MEVs.
Unlike previous years, the 4th Bitcoin [BTC] The halving was quite different: miners’ block subsidy reward was reduced from 6.25 BTC to 3.125 BTC, but miners continue to earn additional transaction fee rewards for each block mined.
In the past half-lives, Bitcoin Hashrate The hash rate dropped due to insufficient transaction fee rewards. This time, the increase in transaction fee rewards has kept the hash rate close to its all-time high, rising from 630 EH/s to 640 EH/s after the halving.
However, as of this writing, it has dropped to 602 EH/s.
Source: Glassnode
Moreover, while Bitcoin’s hash rate has shown signs of resilience, its price seems to be struggling to surpass the $70,000 mark.
What are the indicators for Bitcoin mining?
According to on-chain data from The Block, Bitcoin’s hash rate has been declining since May 26, indicating a potential risk to the network. In such a situation, miners may struggle to profit from their operations.
Source: The Block
This was further confirmed by the following research from Glassnode: Miners’ income Block Data: As of the latest update, on-chain data shows that miners’ revenue has dropped significantly from 525 BTC on May 26 to 384.375 BTC.
Source: Glassnode
However, some see this situation as a positive for Bitcoin, as highlighted in a recent article. Investment Answers stream.
“This is a good thing because miners typically don’t jump into mining Bitcoin until the price rises and becomes large enough to sustain it.”
Look at the Bitcoin mining difficulty dataYou can see how difficult it is to find the correct hash for each block. Note that this difficulty does not affect the price of mined BTC. Therefore, the price of BTC plays a key role in determining miner profitability.
What’s wrong with MEV?
But the block reward is not the only way miners earn: Maximum Extractable Value (MEV) refers to the potential profits miners can make by applying strategies such as front-running, sandwich attacks, etc. that rely on the ability to reorder transactions within a block.
The European Securities and Markets Authority (ESMA) recently recognized the threat MEV poses to investors and announced plans to restrict its use by miners and validators, citing potential market abuse.
The proposal is still in draft form, but stakeholders have until the end of June to submit comments. If approved, it could have a major impact on validators and miners around the world.
