Bitcoin mining profitability drops further every day as asset becomes fully unprofitable
According to data from the cryptorank and on-chain tracker market, the profitability of Bitcoin mining has fallen to an all-time low as the market continues to move under heavy bear pressure. Since Bitcoin mining is not profitable, the market may face conditions and events that we haven’t seen in a long time, and some of them may end up being bullish.
Selling pressure from miners decreases
While this point remains speculative, it is a widely known fact that traders and investors tend to hold positions at a loss longer than at a profit, especially after their loss turned into profit. The same rule could be applied to miners who will not be selling their holdings at a loss, especially if they have some reserves.
Since Bitcoin is mined at a higher price than they could sell on the market, miners are more likely to hold their coins rather than sell them to cover only part of their expenses.
Unfortunately, it is a double-edged sword since we will most likely face greater selling pressure once Bitcoin reaches miners’ breakeven price that allows them to cover all of their mining expenses.
Bitcoin Mining Could Face a Decline in Popularity
Since digital gold is no longer profitable to mine, we must be prepared for a gradual decline in hashrate and network mining difficulty. With dwindling supply in the hands of miners, it should be easier for the market to move up without being constantly pushed down.
Unfortunately, low mining demand will put Bitcoin’s stability as a network at risk even though the drop in the network’s hashrate will be purely transitional.
