The continued market stoop brought on by the FTX fallout hasn’t left Bitcoin miners unscathed. The market has seen the largest one-day miner promoting strain since January 2021, and knowledge analyzed by CryptoSlate reveals that the promoting strain reveals no indicators of stopping.
We may see prolonged promoting strain from miners till the common hash value begins reducing. In November 2022, the common hash value reached $0.05. Bitcoin’s present $17,500 ranges make mining borderline unprofitable not only for small miners, however for big operations as nicely.
The addition of tens of hundreds of recent ASIC miners to the market up to now 12 months put even the most important mining operations deep within the pink, with few anticipating such a pointy enhance in hash value.
At round $9,000 per machine, the latest Bitmain S19Pro ASIC miner has a payback interval of 1,500 days at a median hash value of $0.06.
This enhance in mining prices and drop in profitability pushed miners to promote their Bitcoin holdings. There was a vertical drop within the stability in miner wallets for the reason that starting of November, reaching a low recorded in January 2021.
The web place change in miner holdings completely correlates with the vertical drop in Bitcoin’s value. With power costs anticipated to extend all through the winter and no finish in sight to the continuing bear market, we may see a wave of unprofitable miners shutting down their operations.