Bitrabo Editorial
With Bitcoin’s value plummeting below $55,000, the cryptocurrency mining sector faces significant challenges as operational profitability for many mining machines is severely impacted.
According to a report by F2Pool, a leading Bitcoin mining pool, only a few ASIC models currently remain profitable under the prevailing economic conditions.
Mining Machines Adapt to Economic Realities
F2Pool’s analysis identifies just five ASIC models that are still profitable at the current Bitcoin price levels, including the Antminer S21 Hydro, Antminer S21, Avalon A1466I, Antminer S19 XP Hydro, and Antminer S19 XP with break-even points ranging from $39,581 to $53,187.
On the other hand, models like the Whatsminer M56S++ are teetering on the edge of profitability, with break-even prices perilously close to the current BTC value, highlighting the narrow margins within which miners are currently operating.
With #Bitcoin trading below $58k, what is the current profitability for mining?
At a rate of $0.08/kWh, ASICs less efficient than 23 W/T operate at a loss.
For more details on mainstream miners, please refer to the table below. pic.twitter.com/hJS1lsVnmK
— f2pool
(@f2pool_official) July 4, 2024
The Bitcoin network’s hashrate has notably decreased in response to these challenges, reflecting a reduction in total computational power used for mining and transaction processing.
This decline can be attributed in part to less efficient miners scaling back operations due to reduced rewards following Bitcoin’s recent Halving event, where block rewards decreased from 6.25 to 3.125 BTC.
A 5% negative difficulty adjustment on Friday aimed at easing block discovery for remaining miners follows the decreased competition, potentially stabilizing mining revenues for those still active in the market.
Despite these adjustments, miners continue to face profitability challenges, impacting both individual operations and the broader market.
Bitcoin’s Price Takes a Tumble
Bitcoin has witnessed a sharp 10% decline in the past week, dropping to a current trading price of $55,177. This substantial decrease has led to a 4.1% reduction in the global crypto market cap, with over $100 billion shed in the last day.
Traders have been significantly impacted, experiencing widespread losses. Data from Coinglass indicates that within a day, 207,067 traders were liquidated, resulting in total liquidations of $580.18 million, with BTC accounting for $186.99 million, primarily from long positions.
Image Source: DALL-E, Chart Source: TradingView