{"id":418573,"date":"2020-03-18T23:00:35","date_gmt":"2020-03-18T23:00:35","guid":{"rendered":"https:\/\/wncen.com\/?p=418573"},"modified":"2024-06-11T13:46:32","modified_gmt":"2024-06-11T13:46:32","slug":"data-shows-bitcoin-miners-are-now-unprofitable-heres-what-this-means-for-btc","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/data-shows-bitcoin-miners-are-now-unprofitable-heres-what-this-means-for-btc\/","title":{"rendered":"Data Shows Bitcoin Miners are Now Unprofitable; Here\u2019s What This Means for BTC"},"content":{"rendered":"

Bitcoin has been on a wild ride over the past several weeks and months, with the benchmark cryptocurrency plummeting from recent highs of $10,500 to lows of $3,500 before garnering significant buying pressure that has since sent it back to its current price within the mid-$5,000 region.<\/p>\n

This intense volatility has come about in tandem with that seen by the traditional markets, which have also been caught within an intense downwards trend over the past few weeks.<\/p>\n

The ongoing selloff has led Bitcoin miners to be largely unprofitable, also leading the crypto\u2019s hashrate to plummet.<\/p>\n

The shift in miner’s profitability could have implications on BTC\u2019s price in the near-term as well, as miners are now disincentivized from selling their crypto.<\/p>\n

Bitcoin\u2019s Hashrate Plummets as Miners Begin Capitulating<\/strong><\/h2>\n
Although the cost to mine one Bitcoin<\/a> varies geographically based on electricity rates, the recent selloff<\/a> has largely made it unprofitable for miners to continue their normal operations.<\/p>\n
As such, many smaller miners have shut off their rigs, subsequently leading the cryptocurrency\u2019s hashrate to plummet.<\/p>\n
Glassnode, an on-chain analytics platform, spoke about the widespread unprofitability of mining in a recent tweet, also explaining that Bitcoin\u2019s precarious position from a price perspective has led its hashrate to see a rapid and ongoing decline.<\/p>\n
\u201cDue to the declining BTC price, it is now unprofitable for many miners to continue their operations. Since its peak on March 7th, the 7DMA of Bitcoin’s hashrate has fallen by ~16% – with hashing power disappearing even faster after the drop to $5k,\u201d they noted.<\/p><\/blockquote>\n
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Due to the declining $BTC<\/a> price, it is now unprofitable for many miners to continue their operations.<\/p>\n
Since its peak on March 7th, the 7DMA of #Bitcoin<\/a>'s hashrate has fallen by ~16% – with hashing power disappearing even faster after the drop to $5k.https:\/\/t.co\/5bnFHpTXfX<\/a> pic.twitter.com\/X9uw8hOCgD<\/a><\/p>\n
— glassnode (@glassnode) March 18, 2020<\/a><\/p><\/blockquote>\n