Bitcoin miners take a beating in the ‘crypto winter’

• The hash rate for Bitcoin set a record high of 231,428 EH/s on June 12.
• The price of this coin plunged to less than $20,000 per coin on June 17.
• Analysts say the mining difficulty must fall or the Bitcoin price must rise for miners to benefit.

Bitcoin miners reduce or “plug” miners because of weak profits or a grim market.

According to Blockchain.com data, the hash rate – a measure of Bitcoin mining capability – has dropped by 5.4 percent since June 12. This is when the entire cryptocurrency market is expected to experience the most severe phase of the “crypto winter.”

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Miners and graphics cards (GPUs) have also reduced sharply, in contrast to shortages a year ago. Prices for these products fell by an average of 15% in May, according to Tom’s Hardware. In addition, miners are selling them on secondary markets.

The fall in hash rate and the sale of mining equipment is evidence of the ongoing “winter,” say analysts. As Bitcoin mining costs rise, miners must rebalance their operations, yet the reward is tiny.

“Bitcoin supply and demand are not in favour of both miners and the future price increase,” Yuya Hasegawa, a crypto market analyst at Bitbank, said in a blog post on May 17. 6.

The hash rate for Bitcoin set a record high of 231,428 EH/s on June 12. Bringing in a Bitcoin takes more energy. The price of this coin plunged to less than $20,000 per coin on June 17, the biggest loss since 2020.

Hasegawa said the mining difficulty must fall or the Bitcoin price must rise for miners to benefit