The cryptocurrency Bitcoin (BTC) has been trading in a rather alarming range recently nearing the $19,200 level. On the other hand, Bitcoin's hashrate continues to grow rapidly, which means that Bitcoin miners need to put more computing power into adding new blocks to the Bitcoin blockchain.
When the cost of energy increases at the same speed, Bitcoin miners will have a slim margin in their mining results. This could possibly lead to another big selloff among Bitcoin miners as happened earlier this year. Glassnod releases clearer findings on what happens to hash rate”
The price of Bitcoin Hash has reached an all-time low of $66,500 per Exahash. This means $BTC miners are earning the smallest reward relative to the hash power used in history, and is likely to put the industry under extreme revenue pressure.
Earlier this month, Arcane Research published a report stating that miner revenue has declined by 81% from its peak in October 2021. In addition, the majority of miners saw their gross margins drop to 30%-40% from 80%-90%. The Arcane Research Report notes:
"The mining industry today is increasingly affected and almost lost its footprint in Europe due to the energy crisis. At the same time the American miners also began to feel the heat.
Since then it has been found that energy prices in the U.S. have increased significantly and will likely continue to increase as natural gas prices increase.”
While the Bitcoin hash price made new lows, long-term holders of Bitcoin on the other hand have shown high confidence. Crypto analyst Will Clemente stated, Bitcoin's all-time high of 78% supply hasn't moved in at least 6 months. It is seen as an amazing against the backdrop of bad macroeconomics in recent history, geopolitical uncertainty and the angst of the 3rd world war.
Bloomberg analyst Mike McGlone recently said that Bitcoin is entering an “unstoppable stage of maturity”. He believes that the price of BTC will continue to rise even if the Fed rates increase by the end of the year.
It is increasingly interesting to see that if Bitcoin miners trigger a sustained sell-off, will long-term holders continue to show the same level of confidence? At the time of writing, BTC price is trading at $19,281 with a market cap of $370 billion.
