"At the time of writing, the token is hovering just above $63,000, levels we haven't seen since October 2024. The ongoing plunge has made it far less economical to mine the digital token, a notoriously compute- and energy-intensive process - to the point that large-scale computing companies are starting to unplug their equipment, as Bloomberg reports. As prices continue to plummet and electricity costs climb, it's become tough out there for a crypto miner."
"The hash price index, which is used to determine how much revenue miners can make by mining crypto, reached its lowest point on record this week, according to mining services company Luxor Technology. According to , the average cost to mine one Bitcoin is currently around $87,000 - far higher than its current going rate, making it an extremely unprofitable proposition."
"It's a massive wipeout as investors continue to sell off their reserves, with some comparing it to the time China banned crypto mining in 2021. Crypto enthusiasts are expecting the worst, with some predicting the token will nosedive to just $30,000. "The decrease is historic, the largest since the China ban," mining company CleanSpark chief business officer Harry Sudock told Bloomberg, explaining that winter storms raising electricity prices, combined with a recent broader tech selloff, were likely to blame."
Bitcoin's price has plunged to about $63,000, a level not seen since October 2024. The price decline has made mining far less economical, forcing large-scale computing companies to power down equipment. Hash price indices tracking miner revenue hit record lows this week. The average cost to mine one Bitcoin is around $87,000, substantially above the current market price, rendering mining unprofitable. Investors are selling reserves, with comparisons to the 2021 China mining ban and worst-case price predictions near $30,000. Winter storms and rising electricity prices combined with a broader tech selloff have pressured mining economics. Cryptocurrency has failed to act as a safe haven amid geopolitical and economic uncertainty, while precious metals like gold held up better.
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