It’s no surprise that the Bitcoin mining industry has followed suit in the direction of the crypto market as a whole, but there is a significant difference when it comes to the impact of the beneficiary. As I’m sure most of you are aware, it’s possible to make money trading crypto/digital assets no matter what condition the market is in, whether it’s up or down, if you know how to play the markets you are fully capable of making money no matter the cycle, but mining in crypto is vastly different, and it’s nearly impossible to make money in a bear cycle, and even more so when you look at the uptick in cost of energy.
If you’re not familiar with the metric of a hashprice, it’s essentially a way to gauge the revenue that miners make for their hashing power. The hashprice of Bitcoin has fallen by over 70 percent since our last bull cycle of 2021, which is to be assumed considering the circumstance of the market, however there are other factors that contribute to this such as power rates going up.
When hashprice’s decrease, the subsequent consequence of that is we will see a massive liquidation of the holdings that miner have, which also in turn causes temporary up-spikes in the market as a whole.
This article was written under the guise of the hashrate index report. You can read that report here for more detailed information.