Bitcoin Miners Might Soon Liquidate if BTC Price Continue To Slump

The miner’s profitability could be harmed by the rising cost of mining blocks. Since the price of Bitcoin has been falling over the course of the year, from $46,000 to roughly $19,300, analysts estimated that the difficulty hike would reduce the miners’ profits by about 20%.

Leading analytics company Glassnode issues a dire warning about a particular group of Bitcoin owners who collectively possess nearly $1.5 billion worth of BTC.

According to glassnode glassnode [email protected] On-Chain Followers : 0 View profile , the hash rate for Bitcoin, which gauges the network’s processing power, is at an all-time high.

While an increase in network hash power puts BTC miners in a vulnerable financial position, a greater hash rate suggests a more resilient network that is more secure against an attacker.

“Bitcoin Difficulty has adjusted to a new all-time high due to a rapid increase in network hash power. This increases the BTC cost of production, and puts additional stress on miners.”

The analytics company estimates that it will now cost $19,300 to manufacture one Bitcoin through mining, which is more than the currency’s current value of $19,067. According to Glassnode, the combination of rising production costs and a low price for BTC indicates that miners face a significant danger of capitulation.