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Impact of Bitcoin Price Fall on Mining

Impact of Bitcoin Price Fall on Mining

If the mining There was a game, one might wonder today whether it is still worth the candle. It’s no longer the cabal inspired by a critics which harms today mining of bitcoins, but the price of bitcoin itself. Fallen below the $ 20,000 line, bitcoin offers tough test profitability of industries mining of bitcoins.

an shutdown price influence in some minors

The recent cryptocurrency chase has hit bitcoin miners hard as prices for bitcoin and other cryptocurrencies have fallen.

The fall in the price of BTC led to a decline in miners’ incomes. In concrete terms, the profitability of the mining Bitcoin is now 75% lower than its November 2021 peak.

Many ASIC (Application Specific Integrated Circuit) machines have reached their negative profitability zone. These include the Antminer S11 and the AvalonMiner 921.

This decrease in profitability is reflected above all in the price of hashrate, today is at its lowest point since October 2020: $ 0.0950 / TH / day. According to data from Blockchain.com, miners’ revenues dropped from $ 22.5 million to $ 5 million.

As the value of bitcoin has fallen, so has the value of miner production. The miners therefore had to reduce production during the month. As a result the bitcoin hash rate dropped by about 4% this week.

Shares of companies falling mining

The net flow of bitcoin transfers from miners to exchanges is also positive. This means that miners are entering a bearish zone and prefer to liquidate more bitcoins faster.

As you would expect, companies in mining Bitcoins are feeling that this market is falling even harder. This is especially true of the Canaan company’s activity which nevertheless achieved $ 39.10 dollars per share in March 2021, about 90% of its value. The same is true of VanEck’s DAM (Digital Asset Mining ETF). This company of mining it came into effect barely 3 months ago and already lost 63% of its value at the end of the first ten days of June compared to its record of $ 46.05.

Bitcoin has fallen more than 50% since peaking in November 2021 when it reached $ 69,000. As of this writing, it is trading at $ 19,736 at Binance. Before this market crisis escalates and affects the miningThe latter has already been heavily tested by various prohibition measures in China, but also in certain US States, most notably the State of New York which voted a two – year moratorium on the ban on mining PoW fossil powered.

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Luc Jose Adjinacou

Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and put forward my pen information related to this ecosystem.

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