BTC Mining Profitability Drops Sharply; 40% Decline in Hash Rate to See ‘Healthier Margins’

2020-3-19 17:28

Hash rate falls 40% from ATH, indicating miners are decreasing mining resources dedicated to the network Now unprofitable for many miners to continue their operations

Over the past two weeks, investors have been aggressively making an exit from the risky assets and seeking safety to cash-like assets as Covid-19 concerns push the global economy towards recession. Nations across the world have declared national emergencies and instituted lockdowns.

As investors jumped into cash and US bonds, digital currency prices also took a beating. Last week, Bitcoin had one of its largest sell-off in history. This had the trading volume to surge near record highs. This decline in the price of the leading cryptocurrency follows a similar trajectory as other assets like US equities which posted their second-worst daily decline in history.

Bitcoin prices along with risky assets worldwide have been declining over the past month but despite that, on March 1st, the hash rate of the bitcoin network made a new all-time high.

A rising hash rate indicates that miners are increasing mining resources dedicated to the network.

Source: Tradeblock

The break-even points of bitcoin mining operators change as cost drivers change that includes changes in the network difficulty, which has been rising alongside the hash rate ever since December 2018. This resulted in increasing the break-even points.

According to TradeBlock, throughout January and February, Bitcoin miners were operating at “healthy” profit margins, meaning the break-even point was below the market price of bitcoin.

However, as miner break-even points remained near highs while the bitcoin price fell sharply, it put miners into a loss.

Source: Glassnode

As miners are mining bitcoin on negative profit margins, the hash rate has declined nearly 40% from its ATH. Given the deep decline of BTC price, the hash rate is expected to see even a larger drop as miners reduce resources dedicated to the network.

“Due to the declining BTC price, it is now unprofitable for many miners to continue their operations,” noted crypto analysis company Glassnode.

“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.”

As the hash rate declines, the mining break-even points will also fall, allowing minors to see healthier margins. Also, bitcoin price is seeing a spike as well, jumping past $5,800 today.

Bitcoin (BTC) Live Price 1 BTC/USD =$6,011.4690 change ~ 12.40%

Coin Market Cap

$109.88 Billion

24 Hour Volume

$4.27 Trillion

24 Hour VWAP

$5.55 K

24 Hour Change

$745.1990 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Currency Reserve (GCR) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0.569
Капитализация $0 Rank 99999
Цена в час новости $ 0.0020234 (-100%)

assets concerns risky covid-19 safety push cash-like

Источник: bitcoinexchangeguide.com

assets concerns → Результатов: 67


BTC Remains Unaffected With Stock Market Plunge, Out of Control Gold; But It’s a Good Thing

Renewed fears that the coronavirus will negatively affect the global growth has Gold going out of control. The bullion soared toward $1,700 an ounce amidst a flight to haven assets. “Commodities are witnessing another risk-off day as coronavirus concerns boil up,” said Norbert Ruecker, head of economics at Julius Baer Group Ltd adding, “the flight […]

2020-2-25 19:22


Delphi Digital: 80% of Total ETH Supply is Held by Roughly 7500 Addresses with Other Notable Facts

Digital Assets Research firm, Delphi Digital has recently released a piece that explores the several tips, statistics and concerns of Ethereum [ETH]. An interesting result in said search was shared as being the following: nearly 80 percent of the total existing Ethereum Supply is held by 7572 addresses reports Coin Telegraph. Upon exploring the original […]

2019-3-10 02:23


Finland Tip-Off Sends Denmark Tax Agency After 2,700 Individuals For Bitcoin (BTC) Tax Debts

A Tip-Off From Finland Sends Denmark Tax Agency After 2,700 Individuals For Tax Debts Against Bitcoin Regulatory concerns have been part of the crypto industry more commonly for the last few years, and multiple countries are looking to figure out how to integrate these assets into their economy. One of the biggest issues for Denmark […]

2018-12-12 22:15


Фото:

Brazil’s Tax Authority Goes After Cryptocurrency Profits

Brazil’s tax authority has published proposals to regulate the cryptocurrency landscape over concerns digital assets are being used to launder money and evade tax. A document released by the Department of Federal Revenue of Brasil (RFB) disclosed plans that will force cryptocurrency traders to reveal their identities and for exchanges to submit financial reports to […] The post Brazil’s Tax Authority Goes After Cryptocurrency Profits appeared first on Bitcoin News.

2018-11-3 13:00


Фото:

Bitfinex Vows to End Deposit Freeze as ‘Stablecoin’ Tether Falls Below 90 Cents

USD-backed stablecoin Tether (USDT) fell below $0. 90 on Bitfinex as concerns over its reserves forced traders to buy Bitcoin and other digital assets.   Tether Drops 5 Percent While Major Assets Jump Data from Coinmarketcap shows a sudden fall in USDT , countered by a 5 percent rise in the price of Bitcoin (BTC) , coinciding with news that exchange Bitfinex would resolve its ongoing fiat deposit freeze by Tuesday.

2018-10-15 12:30


дальше еще 18 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru