Bitcoin Facing Issues with Hashprice as Miners Leave Market Massively: Details

Please fol­low and like us:
Pin Share


article image
Arman Shirinyan

Bit­coin’s drop in hash­price could become rever­sal point for mar­ket, and here’s why

Pre­vi­ous­ly, U.Today cov­ered that Bit­coin min­ing prof­itabil­i­ty is at all-time lows after the dig­i­tal gold lost ground around $20,000 and dropped far below the 2017 all-time high and is now strug­gling to get back above the psy­cho­log­i­cal sup­port.

Besides the low Bit­coin price, the chief dif­fi­cul­ty of the net­work and ris­ing elec­tric­i­ty costs all over the world are enor­mous­ly pres­sur­ing Bit­coin and cryp­to min­ers. The hash­price is cur­rent­ly at its Octo­ber 2020 lows.

Many met­rics sug­gest that min­ers are turn­ing off min­ing rigs on a mas­sive scale to min­i­mize their loss­es because of the low or almost nonex­is­tent mar­gin. In addi­tion to min­ing rigs being turned off, min­ers’ address­es’ activ­i­ty sug­gests that they are mas­sive­ly sell­ing their hold­ings to cov­er a por­tion of the loss caused by the unex­pect­ed­ly neg­a­tive mar­ket performance.

Unfor­tu­nate­ly, the major­i­ty of GPUs and min­ing devices are no longer prof­itable, which may lead to the expo­nen­tial drop in the hashrate in the upcom­ing weeks as more big farms decide to go offline to avoid mas­sive losses.

Ads

The aver­age breakeven price for a min­ing rig is cur­rent­ly sit­ting at approx­i­mate­ly $21,000, which had already been bro­ken by BTC as it strug­gles to gain a foothold even above $20,000.

For min­ers to be able to com­fort­ably mine BTC and gain some decent prof­it from it, the orange coin should reach at least $30,000. The brigh­est part of the sto­ry is that with the rapid­ly decreas­ing hashrate, we will see a respectable drop in the dif­fi­cul­ty of the network.

In hind­sight, the mas­sive sell­ing pres­sure incom­ing from min­ers may become a capit­u­la­tion point for the mar­ket bleed­ing for the last month.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *