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. Statistics recorded this past weekend show that bitcoin’s average cost of production has been a lot higher than bitcoin’s USD value recorded on spot market exchanges.
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.
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 says that the web portal uses data collected from Cambridge University in order to “find out the average mining costs of bitcoin.”
“When mining costs are lower than bitcoin’s market value, more miners will join,” the macromicro.me website details. “When mining costs are higher than miner’s revenue, [the] number of miners will decrease.”
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. The chart highlights a “metric for estimating daily miner incomes, relative to their estimated contribution to network hash-power,” Glassnode’s description notes.
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? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, 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. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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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. Statistics recorded this past weekend show that bitcoin’s average cost of production has been a lot higher than bitcoin’s USD value recorded on spot market exchanges.
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.
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 says that the web portal uses data collected from Cambridge University in order to “find out the average mining costs of bitcoin.”
“When mining costs are lower than bitcoin’s market value, more miners will join,” the macromicro.me website details. “When mining costs are higher than miner’s revenue, [the] number of miners will decrease.”
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. The chart highlights a “metric for estimating daily miner incomes, relative to their estimated contribution to network hash-power,” Glassnode’s description notes.
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? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, 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. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Near protocol fell to its lowest level in over sixteen months, as bearish pressure intensified on Nov. 21. Overall, cryptocurrencies started the week trading lower, following increased speculation on a prolonged market crash. Algorand was another notable token to fall, dropping by over 11% today.
Near protocol (NEAR) dropped to its lowest level in over one year, as the token extended recent declines.
NEAR/USD fell to a low of $1.50 on Monday, slipping for a sixth straight session in the process.
This drop in price has seen NEAR move to its weakest point since July 20 last year, and it has since settled on its floor of $1.50.
Looking at the chart, prices have since rebounded from the point of support, and as of writing the token is trading at $1.55.
On the other hand, the 14-day relative strength index (RSI) was unable to remain above its floor of 24.50, and is currently tracking at 22.85.
In order for NEAR to move further away from the $1.50 point, we will likely need to see the index climb closer to a reading of 25.00.
Algorand (ALGO) was another notable mover to start the week, with prices dropping by over 11% in today’s session.
Following a high of $0.2855 over the weekend, ALGO/USD moved to an intraday low of $0.2452 on Monday.
The move saw the token fall below a key support point of $0.25, as bears seem to be pushing price to a floor of $0.24.
Looking at the chart, the RSI is hovering at a floor of its own at 38.20, which seems to be helping prevent further declines in price.
However, should a breakout occur, this will likely push bears to intensify market pressure, potentially sending the token to the target mentioned above.
As of writing, ALGO is trading at $0.2496, which is almost 12% lower than yesterday’s high.
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What is behind Monday’s increased market volatility? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons, photo_gonzo / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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