Bitcoin’s Drop to $54K Leaves Just Five Mining Rigs in Profitable Territory, According to F2Pool
Bitcoin prices have dropped below $58,000, leading to only five mining rigs remaining profitable, potentially indicating a local market bottom.
Miners, who contribute computing power to blockchain networks, are grappling with substantial operational expenses. F2Pool, a prominent mining giant, released a graph early Friday stating that at a rate of $0.08/kWh, ASICs less efficient than 23 W/T are operating at a loss. A kilowatt-hour (kWh) measures the energy usage of an electrical device.
According to F2Pool’s graph, four of Antminer’s various rigs and one Avalon rig are profitable as long as prices stay above $53,100. Conversely, all other miners are currently costing more to operate than the rewards they generate for operators.
Miners play a crucial role in blockchain networks by providing computing power in exchange for tokens. These tokens are continuously sold by miners to cover their operational expenses, which can be quite substantial, leading some miners to file for bankruptcy in recent years.
In June, miners were a significant source of selling pressure on Bitcoin, with over $1 billion worth of BTC sold over two weeks as prices fluctuated between $65,000 and $70,000 levels.
Some market observers suggest that the unprofitability of miners could signify a local bottom, as there is less selling pressure. Dovey Wan, a partner at crypto fund Primitive Crypto, mentioned in a post that Bitcoin miners are close to capitulation, with S19 breaking even at $52,000, setting up a potential local bottom.
In conclusion, the cryptocurrency market is experiencing a shift as Bitcoin prices decline, impacting the profitability of mining operations. The dynamics of mining and its influence on the market continue to evolve, with potential implications for the broader crypto landscape.
