The price of Bitcoin is currently striking gold, falling from a high of over $120,000 to around $96,000, which caused a sharp downturn in the mining sector, with the value of BTC suddenly dropping by $7,000, causing revenues to fall to April levels.
According to a famous Chinese person, X’s BTC minerthe previous generation Bitcoin mining machines, the S19 series and M60 series, have reached a stop price and if the people running them don’t stop, they will start losing money on next month’s electricity bill.
Outdated miners are packing up
The announcement will be made as follows miner Older generations of Bitcoin mining equipment are being phased out due to limiting factors such as increased power consumption and lower hash rates.
Small and medium-sized miners that cannot boast the scale of giants like Marathon Digital and Riot Platforms are shutting down the most, with inefficient legacy equipment being the first to be idled to maintain cash flow.
This has reportedly resulted in a slight drop in global hashrate as carriers prioritize newer, energy-efficient rigs. About half of the network’s miners were already at or near their “shutdown price” at the beginning of this year, but the current decline has added fuel to the fire.
How is mining doing amid the current BTC crash?
The selloff marks the third time Bitcoin has fallen below the $100,000 level in November, adding to the fear-mongering that has been driving it to new highs for weeks.
The decline also affected Bitcoin Mining’s stock price, which skyrocketed during Friday’s widespread market selloff, wiping out nearly $8 billion in market capitalization for the group in a single day.
Miners Bitdeer Technologies Group and Bitfarms reported a 20% and 17% decline in their stock prices, respectively, while Cipher Mining’s stock fell 13%. Even Mara Holdings, which holds the most Bitcoin among miners, fell more than 10%.
The sector’s market capitalization fell from $69.1 billion to $61.3 billion from Nov. 12 to Nov. 13, according to BitcoinMiningStock.io, a platform that tracks metrics for 34 publicly traded Bitcoin mining stocks.
The group’s total capitalization is down 22% from the previous week from $78.7 billion, and is down a further 35% from the record market capitalization of $94.2 billion reached on October 15th.
Bitcoin miners who were immersed in AI were more affected than most people. Many in this cohort were already seeing double-digit declines, but Thursday’s price action made matters worse, marking one of the sector’s cruelest weeks.