Bitcoin hash rate falls after halving

Early indications are that Bitcoin's hash rate has dropped more than 15% following yesterday's halving. The halving reduced Bitcoin's new issuance from 12.5 BTC to 6.25 BTC per block, which at today’s prices this amounts to a $7.1 million subsidy from new issuance or half of the $14.2 million it would be under a 12.5 BTC regime.

Despite prospects of a 50% overnight decrease in revenue, new miners continued to come online leading up the halving, pushing hash rate near all time highs.

Why it matters:

• Heading into the halving there were fears of miners shutting off due to an overnight collapse in revenue. While miners cannot shut off overnight, the expectation is that inefficient miners could capitulate over the coming weeks without a price increase from here
• In an April interview, Blockware Solutions CEO Matt D’Souza predicted that about 27%–35% of hash rate could go offline if Bitcoin remains below $9,000 for several weeks post-halving