Hash Price (Bitcoin)

Hashprice measures the cost of mining a Bitcoin block. The index provides insights into the market's perception of mining profitability and network health, quantifying the daily revenue a miner earns per unit of computational power (terahash per second, TH/s).

Hashprice is a function of four variables:

• Bitcoin’s Market Price: A higher BTC price directly increases the dollar value of mining rewards, elevating hashprice.

• Network Hashrate and Difficulty: As more participants contribute computational power, mining difficulty rises, diluting rewards per TH/s and reducing hashprice.

• Transaction fees and Block Subsidy

Miner Profitability as a Market Stress Signal

Hash Price directly reflects the economic viability of mining operations. When it falls below operational costs (electricity + hardware depreciation), miners face capitulation risks, often liquidating BTC reserves to cover expenses. This selling pressure can precede broader market downturns, while Hash Price recovery signals reduced sell-side pressure and potential accumulation phases.

Hash Price is calculated by dividing miners' daily revenue (block rewards + transaction fees) by the Bitcoin network's total hashrate, adjusted for Bitcoin's market price. The index is normalized against historical averages to contextualize current mining economics relative to past performance.