‘Survival Mode’ Activated: Bitcoin Miners Struggle As Hashprice Collapses

Bitcoin’s mining industry is feeling growing strain as the key profitability gauge, hash price, slides toward levels that could push smaller operators offline and put pressure on mining equipment providers and service ￰0￱ Price Nears Danger Level According to industry reports , hash price — the expected daily revenue per unit of computing power — is about $42 per PH/s today, down from above $62 per PH/s in ￰1￱ dip toward the $40 mark is forcing some smaller and less efficient miners to weigh powering down their ￰2￱ have disclosed that when revenue falls this far, operators with thin margins can no longer cover power and maintenance ￰3￱ makers and hosting firms are being ￰4￱ for machines have slowed, and any income tied to Bitcoin has lost value after the market slide in ￰5￱ manufacturers have started mining with their own machines to offset weaker customer ￰6￱ and similar firms have been reported to expand self-mining operations to fill gaps in ￰7￱ Move Into AI Compute High capital costs and steady increases in hashrate make running ASIC farms tougher, especially after the April 2024 halving cut the block reward to 3.125 ￰8￱ in 2009, the block reward was 50 BTC and people could mine with CPUs.

Today, only specialized hardware makes mining viable for most ￰9￱ shift has pushed some companies to convert capacity into general compute for AI ￰10￱ on reports, big deals show the trend is ￰11￱ Mining signed a $5.5 billion, 15-year deal to supply compute power to Amazon Web Services in ￰12￱ later agreed to provide GPU services to Microsoft in a contract valued at $9.7 ￰13￱ moves are meant to bring steady revenue when Bitcoin mining profits ￰14￱ Slump Adds To Miner Stress Bitcoin’s price weakness has compounded the ￰15￱ token briefly fell below $100,000, trading as much as 20% below the October 6 high of above $126,000. Analysts point to heavy selling by long-term holders: since late June, net sales from that group have topped 1 million bitcoin, according to Compass Point analyst Ed Engel.

A large liquidation of leveraged positions on Oct. 10 also shook the market and knocked out support levels near $117,000 and $112,000. Markus Thielen, founder and CEO of 10X Research, said the market’s failure to reclaim key levels suggests bearish conditions, and his firm maintains that bitcoin could still fall further before a bottom ￰16￱ team had earlier forecast a drop to $100,000 and now says a buyable bottom may be “a few weeks away.” Featured image from Pexels, chart from TradingView