The entire digital assets market is facing down trends currently. The latest bearish moves have affected even the leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and other altcoins.
Bitcoin’s price fluctuations could be altogether associated with its hashrate and mining profitability.
Reportedly, bitcoin mining profitability was at all-time lows following the instance when the digital gold dropped to approximately $20,000 and plunged far below the all-time high of 2017.
Apart from the low Bitcoin price, the concerns regarding the network difficulty and electricity costs are a constant concern at a global level and are pressurizing the flagship crypto and its miners. Currently, the hash price is at its October 2020 lows.
And a lot of metrics highlight that the miners are turning off mining rigs on a large scale in order to minimize their losses due to low or nearly nonexistent margins. Furthermore, along with mining rigs being turned off, miners’ addresses activity also highlights that they are selling their holdings exponentially to compensate for a portion of the loss resulting from the unexpected negative market performance.
And now, the situation has been so unfriendly that most of the GPUs and mining devices are not profitable anymore, and that might lead to a massive slump in the hashrate in the upcoming weeks as more and more large farms decide to go offline to prevent high losses.
Currently, the average breakeven price for a mining rig is around $21,000, which is already broken by Bitcoin (BTC) as the crypto asset is wobbling in the price volatility.
If the miners want to mine the asset and generate some decent profit properly, it is important for Bitcoin to be around at least $30,000.
Although it is a different matter that as the hashrate massively decreases, there comes a significant drop in the network difficulty.
At the time of writing, Bitcoin (BTC) is exchanging hands at $20,503 with a market cap of $391,036,809,569 and is up by around 10% in the last twenty-four hours.
Source: https://www.thecoinrepublic.com/2022/06/20/bitcoin-btc-witnesses-issues-regarding-hashprice-miners-leave-the-space-exponentially/