Connect with us

Bitcoin

Bitcoin miners face a squeeze as BTC production cost remains well above spot market value

Bitcoin miners are dealing with lots of pressure following the recent difficulty adjustment increase on Nov. 20, 2022, and the leading crypto asset dropping further in value against the U.S. dollar following FTX’s collapse. The average cost of bitcoin production is much higher than the bitcoin spot market value. Statistics from this weekend have shown that.

Statistics Show Bitcoin’s Cost of Production Is a Lot Higher Than the Leading Crypto Asset’s USD Value

On Sunday, Bitcoin.com reported on Bitcoin’s difficulty rising by 0. 51% at block height 764,064, and the increase pushed the difficulty to an all-time high at 36. 95 trillion. After that difficulty transition, data shows the overall global hashrate dropped from 317 exahash per second (EH/s) to 233 EH/s.

The hashrate is currently coasting along at 250. 59 EH/s, according to records from coinwarz.com. At the same time, BTC‘s fiat value dropped a great deal after FTX collapsed and filed for bankruptcy protection.

Statistics on Nov. 21, 2022, show that the cost of bitcoin production is much higher than BTC‘s current USD spot market value. The metrics recorded by macromicro.me indicate that the average mining cost is $19,662 today, while the USD value of BTC is recorded at 16,120 nominal U.S. dollars per unit.

Bitcoin Miners Face a Squeeze as BTC Production Cost Remains Well Above Spot Market Value
Macromicro.me statistics on Nov. 21, 2022.

The macromicro.me statistics indicate that bitcoin’s price in comparison to the cost of BTC production has been lower since Oct. 6, 2022. Macromicro.me claims that it uses data from Cambridge University to determine the average mining cost of bitcoin .

” When mining costs are lower that bitcoin’s market price, more miners will sign up,” the macromicro.me website details. “If mining costs are greater than miner’s revenues, [the] number miners will drop .”

Bitcoin Miners Face a Squeeze as BTC Production Cost Remains Well Above Spot Market Value
Braiins.com statistics on Nov. 21, 2022.

In addition to the metrics showcased on macromicro.me, Glassnode’s hash price chart indicates that the hash price is at an all-time low. According to Glassnode, the chart shows a “metric to estimate daily miner incomes relative to their estimated contribution towards network hash-power.”

Analytics from braiins.com also indicate that the current hash value is lower than the current hash price. Similar to macromicro.me’s stats, braiins.com metrics show the change occurred around Oct. 6, 2022. If bitcoin prices don’t increase or if they drop lower, a number of BTC Mining operations will face a squeeze out of the industry if they are not facing this situation already.

What do you think about bitcoin’s spot market value dropping below the crypto asset’s cost of production? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.

Read More

Bitcoin

Medtech Firm Semler Scientific Buys Another $10M in Bitcoin

Medical technology company Semler Scientific announced the acquisition of 111 more bitcoins for $10 million between February 14 and April 24, 2025. The acquisition brought Semler Scientific’s holdings to 3,303 bitcoins. Semler Scientific BTC Holdings Acquired for an Average of $87,929 per Coin Semler Scientific (Nasdaq: SMLR…
Read More

Continue Reading

Bitcoin

LAX Cargo Theft Unveiled: LAPD Catches Suspects Behind $2.7M in Stolen Bitcoin Miners

A local news outlet reports that two individuals tied to a South American theft ring were apprehended in Los Angeles after allegedly stealing $4 million in goods, including $2.7 million worth of application-specific integrated circuit (ASIC) bitcoin miners. From Tequila to Bitcoin Mining Rigs: LAPD Unravels Multi-Million Dollar Heist The Los Angeles Police Department (LAPD) [……
Read More

Continue Reading

Bitcoin

Bitcoin Inches up to $95K, but Tariff Uncertainty Persists

The digital asset continued its upward trajectory on Friday, despite worries of how a drop in Chinese imports will impact the economy. Bitcoin Nears $95K Despite Trump Tariff Turbulence Some economists suggest President Donald Trump’s frequent last-minute trade policy reversals may have a more dire impact on the economy than his initial tariff announcements…
Read More

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.