Bitcoin miners are facing harsher conditions despite easier mining difficulty

Despite the reduced difficulty of mining, Bitcoin (BTC) miners are facing a tougher market situation due to rising energy and hardware costs. Special state of the network I will clarify.

According to Coin Metrics, BTC mining hash rates are stable despite falling prices.

Hash rate is the computational power required to create new blocks on the Bitcoin network and mine new blocks. Since peaking at 220 EH / s in May, the 30-day moving average has fallen to about 215 EH / s.

The difficulty of mining is decreasing

Another important indicator, the difficulty of mining, has dropped significantly. The mining difficulty changes every two weeks so that the intervals between blocks are 10 minutes.

Difficulty directly affects profitability as it determines the average time between each block. It has recently decreased by 2.3%, the second largest decrease this year.

Energy costs are affecting miners

While the difficulty of mining is decreasing, the energy cost of Bitcoin mining is increasing significantly.

The global energy crisis, inflation, and supply chain problems put miners at a disadvantage of paying more for less energy, resulting in lower profits.

Of the top 10 states by hash rate in the United States, only Texas and Nebraska are experiencing lower industrial electricity prices, according to the report. Prices in Oklahoma and Georgia are increasing by more than 20% each year.

However, not all miners are feeling this rise, as some miners have relationships with energy providers, which can hedge the rise.

Selling Bitcoin miners can keep prices down

All of these issues have led many miners to sell their Bitcoin holdings. This is the movement of JP Morgan. To tell It just keeps the price of the asset low.

According to bank strategists, miners accounted for 20% of all BTC sales reported in May and June. If this continues, it will put pressure on Bitcoin prices in the third quarter.

Which miner will survive the winter of this code?

according to analysis According to Arcane analyst Jalan Merelud, many miners will find it difficult to survive the current market conditions.

Which public #bitcoin Will miners be winners and losers in the bear market?

I analyzed and examined their cash flow and balance sheet.

Thread 🧵

— Jaran Mellerud (@JMellerud) June 27, 2022

But he believes Argo is the miner in the best financial position to survive the market. The marathon is the weakest for its next machine payment, which he believes will deplete its liquidity.