The year is close to its end, and the crypto market is yet to begin the long-awaited bullish run. Instead, the prices of cryptos have dropped further recently, with Bitcoin trading below $20K.
Meanwhile, BTC’s mining stock volume has also dropped recently. Several crypto miners are near bankruptcy as the crypto market decline worsens.
According to multiple statistics, BTC mining stock’s share volume has dipped to 2% from its peak of 44%. This particular metric has lost popularity since Bitcoin’s ATH in 2021.
Jaran Mellerud, a crypto mining expert, announced the news of the decline via Twitter. According to him, the low trading volume is terrible news for the flagship currency.
It signifies that the BTC market is running low on sellers. He said investors do not remember that buying stocks in BTC mining companies is another way to obtain exposure to Bitcoin.
However, Mellerud added that this is an excellent opportunity for investors. They can take advantage of the market to buy more stocks as prices are down.
Meanwhile, Bitcoin miners are facing several issues currently. First, Bitcoin’s hash rate is currently at a high level. BTC hash rate is the measure of a computer’s network horsepower.
Blockchain.com revealed the hash rate is at about 262 exahashes per second (EH/s). The hash rate dropped from its peak of 273 exahashes per second on November 2nd.
Another metric that is at a peak level is Bitcoin’s mining difficulty. This metric measures how hard it is to mine a block on the Bitcoin network.
Is Bitcoin Mining Still Profitable?
BTC’s hashprice index has also dropped recently. BTC’s hashprice is also known as BTC’s profitability.
The present hashprice is about $0.059 per TH/s/d. The metric has dropped from its ATH in 2021 by about 82%.
Furthermore, the Bitcoin mining sector is facing several challenges, including the rising energy cost. Bitcoin mining is a power-intensive process.
Hence, the recent high tariffs on electricity have affected mining activities. Meanwhile, it does not look like BTC mining conditions will improve soon.
The price of Bitcoin has to recover before BTC mining can become profitable. However, this is unlikely to occur soon, given the current state of the market.
Despite several predictions that Bitcoin would trade at $30K before 2023, the crypto has slumped recently. The latest FTX crisis has pushed the price of Bitcoin down by over 17% in the past two weeks.
Bitcoin is presently down by over 75% from its peak in 2021. Hence, miners would have to wait for the cryptocurrency to pick pace amid the crypto market downturn.
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