{"id":9983,"date":"2022-06-30T19:49:28","date_gmt":"2022-07-01T00:49:28","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=9983"},"modified":"2022-06-30T19:49:30","modified_gmt":"2022-07-01T00:49:30","slug":"bitcoin-miners-are-facing-harsher-conditions-despite-easier-mining-difficulty","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=9983","title":{"rendered":"Bitcoin miners are facing harsher conditions despite easier mining difficulty"},"content":{"rendered":"\n

JP Morgan strategists say Bitcoin miners current sell-off is placing pressure on the price of the flagship digital asset.<\/em><\/strong><\/p>\n\n\n\n

Despite the decline in mining difficulty, Bitcoin (BTC<\/a>) miners are facing harsher conditions<\/a> in the market due to the rising costs of energy and hardware, Coin Metrics\u2019 special State of the Network<\/a> reveals.<\/p>\n\n\n\n

Coin Metrics said that the BTC mining hash rate has been stable despite the price decline.<\/p>\n\n\n\n

Hash rate is the computational power required to create new blocks on the Bitcoin network and mine new ones. Since peaking at 220 EH\/s in May, the 30-day moving average has dropped to around 215 EH\/s.<\/p>\n\n\n\n

Mining difficulty is down<\/h2>\n\n\n\n

Mining difficulty, another critical metric, has significantly declined. Mining difficulty changes every two weeks to ensure that the interval between each block remains 10 minutes.<\/p>\n\n\n\n

Difficulty directly affects profitability as it determines the average time between each block. It recently fell by 2.3%, the second-largest decline this year.<\/p>\n\n\n\n

Energy cost is affecting miners<\/h2>\n\n\n\n

While the mining difficulty is down, the energy cost for Bitcoin mining has increased significantly.<\/p>\n\n\n\n

The global energy crunch, inflation, and supply chain issues place miners in an unfavorable situation where they pay more for less energy, resulting in lower revenue.<\/p>\n\n\n\n

Per the report, out of the top ten states by hash rates in the US, only Texas and Nebraska have seen a reduction in their industrial electric rate. Oklahoma and Georgia rates have increased by more than 20% yearly.<\/p>\n\n\n\n

But not all miners feel this increase as some have built relationships with their energy providers, which allows them to hedge against the rise.<\/p>\n\n\n\n

Bitcoin miners\u2019 sell-off can keep price down<\/h2>\n\n\n\n

All these issues have pushed many miners to sell their Bitcoin holdings<\/a>, a move JP Morgan says<\/a> will only keep the price of the asset low.<\/p>\n\n\n\n

According to strategists at the bank, miners accounted for 20% of all reported BTC sales in May and June. If this continues, it will weigh on the price of Bitcoin during the third quarter.<\/p>\n\n\n\n

Which miner will survive this crypto winter?<\/h2>\n\n\n\n

According to an\u00a0analysis<\/a>\u00a0by Arcane analyst Jaran Mellerud, many miners will find it difficult to survive the current market situation.<\/p>\n\n\n\n

However, he believes that Argo is the best-positioned miner financially to survive the market. Marathon is the weakest because of its upcoming machine payment, which he believes would drain its liquidity.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

JP Morgan strategists say Bitcoin miners current sell-off is placing pressure on the price of the flagship digital asset. Despite<\/p>\n","protected":false},"author":1,"featured_media":9984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3423,254,3421],"tags":[3472,3495,3426,888],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9983"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9983"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9983\/revisions"}],"predecessor-version":[{"id":9985,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/9983\/revisions\/9985"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/media\/9984"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9983"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}