Bitcoin (BTC) has been hit hard in the last wave of selling and its price has dropped below $20,000. Miners are encountering issues with Bitcoin HashPrice. And in this environment, BTC miners are leaving the market at great speed.
Bitcoin Hashprice currently at October 2020 lows
As you follow on Kriptokoin.com , Bitcoin lost its ground at $ 20,000. The leading crypto later dropped well below its 2017 all-time high. Now she struggles to rise above psychological support. While these developments are taking place, Bitcoin mining profitability is at an all-time low.
Along with the low Bitcoin price, the main difficulty of the network and rising electricity costs all over the world are putting Bitcoin and crypto miners under great pressure. Bitcoin Hashprice is currently at October 2020 lows. Crypto expert Will Clemente shared the following on Twitter:
The lower Bitcoin price, higher hash/difficulty and higher energy costs put serious pressure on miners’ margins. Hashprice is now at its lowest level since October 2020. Hash strips intersected. It shows machines unplugging + Miners sending BTC to exchanges.
Why do miners sell their BTC?
Many metrics show that miners are shutting down their mining platforms on a large scale to minimize their losses due to low or almost no margin. In addition to the closure of mining rigs, the activity of miners’ addresses indicates that they are selling their assets in bulk. This is to cover some of the loss caused by unexpectedly negative market performance.
Unfortunately most GPUs and mining devices are no longer profitable. This may cause larger farms to decide to go offline in the coming weeks to avoid major losses. According to experts, this is likely to lead to an exponential decrease in the hash rate. Also, the average breakeven price of a mining rig is currently around $21,000. This has already been broken by BTC as it struggles to gain a foothold even above $20,000.
Bitcoin needs to reach at least $30,000 for miners to be able to comfortably mine BTC and make a good profit out of it. The brightest part of the story is that we will see a notable decrease in the difficulty of the network with the rapidly declining hashrate. In retrospect, the massive selling pressure from miners is likely to be a capitulation point for the market to bleed for the past month.
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