If Bitcoin’s price declines, fewer miners will be able to mine.
The price movement has also surpassed the 200-week moving average.
Those already worried about Bitcoin’s negative price movement are in for a rough week. A new bottom may have been found on Saturday as Bitcoin’s price fell below $19,000. The latest Bitcoin mining statistics confirm this as well.
Furthermore, this new pricing level necessitates deviating from the usual in many ways. The price of roughly $18,593 is much lower than the previous all-time high price of $19,700 in the year 2020. This price movement has also surpassed the 200-week moving average.
Mining More Difficult and Less Rewarding
Small-scale miners are finding it more difficult to mine Bitcoin since the current price is close to the cost of mining, according to the most recent statistics. This also illuminates a look at the present market value of Bitcoin. Doctor Profit, a Bitcoin trader, described the current state of affairs as “unsustainable” for most miners.
However, it is suggested that this might indicate that Bitcoin has reached its lowest price. Despite the fact that it was not evident when precisely the Bitcoin price would come around, historical data provides a clue. If Bitcoin’s price declines, fewer miners will be able to mine. Similarly, as the price of Bitcoin rises, more miners will join the effort, resulting in more earnings from mining.
According to the trader, the bottom of each cycle was signaled by Bitcoin’s price falling below its manufacturing price. Similar behavior was seen in January and November of 2017 and most recently in a collapse caused by the pandemic crisis. Data from the monitoring site Glassnode shows that bitcoin mining income continues to decline. Miners are less motivated now that mining costs are rising and the macroeconomic picture is bleak.