'Crypto winter' batters Bitcoin miners

 Many Bitcoin miners are forced to downsize or "plug" miners because of low profits or losses

According to experts, the decline in hashrate, while the mining equipment sold off is the clearest proof of the rigors of the "winter" that is taking place. Miners are forced to rebalance their operations in the context of the increasing cost of Bitcoin mining, but the return is very small.

“Bitcoin supply and demand are not in favor of both miners and the future price increase,” Yuya Hasegawa, a crypto market analyst at Bitbank, said in a blog post on May 17. 6.

Bitcoin mining is currently rated extremely difficult, as the hashrate reached an all-time high of 231,428 EH/s on June 12. Meaning, bringing in a Bitcoin is getting harder and harder, requiring more energy. But as soon as the difficulty peaked, the price of the coin plummeted to less than $20,000 per coin on June 17 - the steepest drop since 2020.

According to Hasegawa, to get out of this situation, the mining difficulty must decrease, or the Bitcoin price will increase to help miners make a profit. “If the current problem persists, miners are likely to sell Bitcoin as soon as its price recovers slightly. This slows down the rate of price increase, putting the digital currency in a sideways state for a while.” , he commented.
Previous Post Next Post