Why Bitcoin Miners May Be on the Verge of “Losing Everything”

Bitcoin [BTC] miners could be about to capitulate due to the continuous rise in hashrate. This was the opinion from CryptoQuant, the on-chain cryptographic analysis platform.

However, the BTC hashrate was not the only one involved in posing a risk.

Well, don’t forget that the hashrate acts as the computing power for the mining process.

Here is AMBCrypto Bitcoin Price Prediction for 2022-2025

At the time of publication, the BTC hash rate it was at an all-time high (ATH) of 261,576,490,591.99 per second. This data was according to CryptoQuant.

Similarly, the mining difficulty of the coin was extremely high since October 9 when diminished.

Source: CryptoQuant

All risk, less rewards

Reportedly, the increase in mining difficulty could lead to a further decline in miner income and profits. With the current state, miners could find it challenging to get out of declining income circumstances.

With lower profitability in full force, CryptoQuant noted that Bitcoin miners could see a decline worse than 80% year over year (YoY). CryptoQuant further stated,

“In this situation, the amount miners made of each hash plummeted to an all-time low, falling by more than 80% from the previous year. In the current market environment, miners are paid quite low, which could lead to another miner-related capitulation.”

Source: Glassnode

A look at BTC miner revenue showed that there was a massive decline since the last day of September.

This situation suggests that miners are finding it increasingly difficult to remain profitable. According to Glassnode, miners income which was approximately 1,058.09 on October 10, had decreased to 908.54 at press time.

Bitcoin miners also saw more downside as block rewards fell to 893.75, especially as the number of blocks mined seemed to be in free fall.

Glassnode data He showed that the BTC blocks mined as of October 10 were 171. However, the difficulty in mining led to the daily count of 143 blocks mined as of October 13.

Source: Glassnode

Is there a way out?

Considering the decline, Bitcoin miners would expect a quick fix just around the corner. However, situations like this may not go away any time soon.

At the time of writing, BTC was trade at $19,764. While the king coin may have claimed the $380 billion market capitalization, miners may need much more than a minimal revival in their quest for better rewards.

Still, a high asset price might not be the only guaranteed way out, as cheaper electricity, efficient hardware and an improved mining pool could also play a role.

On the other hand, crypto exchange Binance wants to help miners. In his statement on Oct. 14, Binance noted that he was supporting the Bitcoin mining industry with a $500 million loan project. As such, this development could help reduce pressure on the BTC mining community.

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