Recently, the price of Bitcoin dropped below $54,000, showing a decrease of more than 6% in just 24 hours due to increased bearish pressure in the market. This decline was further exacerbated by Mt. Gox, a cryptocurrency exchange that went bankrupt more than ten years ago, starting to repay its customers after a long bankruptcy process.
As a result of this latest downturn, many Bitcoin mining machines have become unprofitable. Data from f2pool reveals that only six mining machines remain profitable when Bitcoin’s price falls below $56,000. These machines include models such as the Antminer S21 Hyd, S21, A1466I, S19 XP Hyd, S19 XP, and the Whatsminer M56S++.
The data also shows that ASICs with an efficiency of less than 23 watts per terahash (W/T) are operating at a loss when the electricity rate is $0.08 per kilowatt-hour (kWh). Miners have been significant contributors to the selling pressure on Bitcoin, selling off more than $1 billion worth of crypto assets when the price ranged between $65,000 and $70,000.
Market analysts believe that the current unprofitability of miners could signal a potential local bottom, as reduced profitability may lead to a decrease in selling pressure. Additionally, experts suggest that the network is displaying signs of miner capitulation, where miners may stop operations or sell part of their BTC reserves.
In the past, this phase has often marked the bottoming of Bitcoin prices, followed by an upward trend in the asset’s value. This could potentially indicate a positive turn for Bitcoin in the future.
It is important to keep an eye on these developments in the mining sector as they can have a significant impact on the overall cryptocurrency market. As the market continues to fluctuate, it will be interesting to see how miners adapt to these changing conditions and what impact it will have on the price of Bitcoin moving forward.