Analysts say Bitcoin miners’ worst days are probably behind them, but the network's soaring hash rate and uptick in difficulty are weighing on profit margins.
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Bitcoin miner profitability under threat as hash rate hits new all-time high
Analysts say Bitcoin miners’ worst days are probably behind them, but the network's soaring hash rate and uptick in difficulty are weighing on profit margins.
Bitcoin miner profitability under threat as hash rate hits new all-time high
The Bitcoin hash rate hit a new all-time high above 245 EH/s on Oct. 3, but at the same time, BTC miner profitability is near the lowest levels on record.
With prices in the low $20,000 range and the estimated network-wide cost of production at $12,140, Glassnode analysis suggests “that miners are somewhat on the cusp of acute income distress.”
Bitcoin network hash rate. Source: Hashrate IndexGenerally, difficulty, a measure of how “difficult” it is to mine a block, is a component of determining the production cost of mining Bitcoin. Higher difficulty means additional computing power is required to mine a new block.
Utilizing a Difficulty Regression Model, the data shows an R2 coefficient of 0.944 and the last time the model flashed signs of the miners' distress was during BTC’s flush out to $17,840. Currently, it hovers near $18,300, which is not far from the price range seen in the past two weeks.
Bitcoin: Difficulty regression model. Source: glassnodeThe hash rate hitting a new all-time high effectively means that miner margins will be further squeezed and outfits that are unprofitable can either mine at a loss, assuming that BTC’s future price will eventually make up for the cost difference, or they can unplug and wait until either the difficulty drops or energy costs improve.
European Parliament members vote in favor of crypto and blockchain tax policies
The resolution recommended authorities in the parliament's 27 member states consider a “simplified tax treatment” for crypto users involved in occasional or small transactions.
European Parliament members vote in favor of crypto and blockchain tax policies
The resolution recommended authorities in the parliament's 27 member states consider a “simplified tax treatment” for crypto users involved in occasional or small transactions.
If Credit Suisse collapses, will it bring more volatility to the crypto market? Watch The Market Report
On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the Credit Suisse situation and what impact it would have on the cryptocurrency market if it did collapse.
If Credit Suisse collapses, will it bring more volatility to the crypto market? Watch The Market Report
On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the Credit Suisse situation and what impact it would have on the cryptocurrency market if it did collapse.
Grayscale Bitcoin Trust terminates material agreements with Genesis
Genesis will no longer be involved in GBTC's main operations, but will still act as a liquidity provider.
What is PoW Ethereum (ETHW), and how does it work?
PoW Ethereum or ETHW is a forked version of the Ethereum blockchain created by a Chinese miner after the Merge of the execution and consensus layers.
What is PoW Ethereum (ETHW), and how does it work?
PoW Ethereum or ETHW is a forked version of the Ethereum blockchain created by a Chinese miner after the Merge of the execution and consensus layers.
Is payments giant SWIFT preparing for a blockchain-bound future?
Are TradFi and DeFi converging, moving toward a middle ground that includes tokenized assets, interoperability and regulation?
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
“It’s 10% up or 10% down each day. I don’t have to wait five years in between crises. As a matter of fact, I only have to wait about 45 minutes.”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
In another reality, Bill Noble would be just another guy in a suit behind a big desk at the Fed or the SEC, probably murmuring negative incantations like “crypto is bad.”
He’s certainly got the track record for it: JP Morgan, UBS, Morgan Stanley, Goldman Sachs. But that’s Noble in an evil mirror dimension. In our world, he is a true crypto guy, talking to me in a t-shirt with bicycles in the back of the room. He turned from the Dark Side and joined the rebels.
He is known for his popular YouTube podcasts and TV appearances. Currently, he is a senior market analyst at Token Metrics.
Wall Street career
While studying economics (1987–1991) at Rutgers University in New Jersey, he managed to wangle one of only two sought-after internships at the time at JP Morgan’s forex desk on Wall Street. Noble started off when trading technology was primitive and lots of analysis was done by hand on paper. In August 1990, he was put in charge of the desk, while everyone went on holiday, “‘Cos nothing happens in August, let the kid fill in.” Then Iraq invaded Kuwait, and all sorts of craziness broke out in the markets.
John J. Murphy’s Charting Made Easy.“The price volatility seemed so extreme to me. I had no idea how anyone kept track of this. So, I went to the technical analyst who was attached to the currency unit. I said, ‘I bet everybody comes to you looking for help trying to figure this out.’”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
In another reality, Bill Noble would be just another guy in a suit behind a big desk at the Fed or the SEC, probably murmuring negative incantations like “crypto is bad.”
He’s certainly got the track record for it: JP Morgan, UBS, Morgan Stanley, Goldman Sachs. But that’s Noble in an evil mirror dimension. In our world, he is a true crypto guy, talking to me in a t-shirt with bicycles in the back of the room. He turned from the Dark Side and joined the rebels.
He is known for his popular YouTube podcasts and TV appearances. Currently, he is a senior market analyst at Token Metrics.
Wall Street career
While studying economics (1987–1991) at Rutgers University in New Jersey, he managed to wangle one of only two sought-after internships at the time at JP Morgan’s forex desk on Wall Street. Noble started off when trading technology was primitive and lots of analysis was done by hand on paper. In August 1990, he was put in charge of the desk, while everyone went on holiday, “‘Cos nothing happens in August, let the kid fill in.” Then Iraq invaded Kuwait, and all sorts of craziness broke out in the markets.
John J. Murphy’s Charting Made Easy.“The price volatility seemed so extreme to me. I had no idea how anyone kept track of this. So, I went to the technical analyst who was attached to the currency unit. I said, ‘I bet everybody comes to you looking for help trying to figure this out.’”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
“It’s 10% up or 10% down each day. I don’t have to wait five years in between crises. As a matter of fact, I only have to wait about 45 minutes.”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
“It’s 10% up or 10% down each day. I don’t have to wait five years in between crises. As a matter of fact, I only have to wait about 45 minutes.”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
“It’s 10% up or 10% down each day. I don’t have to wait five years in between crises. As a matter of fact, I only have to wait about 45 minutes.”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
In another reality, Bill Noble would be just another guy in a suit behind a big desk at the Fed or the SEC, probably murmuring negative incantations like “crypto is bad.”
He’s certainly got the track record for it: JP Morgan, UBS, Morgan Stanley, Goldman Sachs. But that’s Noble in an evil mirror dimension. In our world, he is a true crypto guy, talking to me in a t-shirt with bicycles in the back of the room. He turned from the Dark Side and joined the rebels.
He is known for his popular YouTube podcasts and TV appearances. Currently, he is a senior market analyst at Token Metrics.
Wall Street career
While studying economics (1987–1991) at Rutgers University in New Jersey, he managed to wangle one of only two sought-after internships at the time at JP Morgan’s forex desk on Wall Street. Noble started off when trading technology was primitive and lots of analysis was done by hand on paper. In August 1990, he was put in charge of the desk, while everyone went on holiday, “‘Cos nothing happens in August, let the kid fill in.” Then Iraq invaded Kuwait, and all sorts of craziness broke out in the markets.
John J. Murphy’s Charting Made Easy.“The price volatility seemed so extreme to me. I had no idea how anyone kept track of this. So, I went to the technical analyst who was attached to the currency unit. I said, ‘I bet everybody comes to you looking for help trying to figure this out.’”
Wall Street disaster expert Bill Noble: Crypto spring is inevitable
In another reality, Bill Noble would be just another guy in a suit behind a big desk at the Fed or the SEC, probably murmuring negative incantations like “crypto is bad.”
He’s certainly got the track record for it: JP Morgan, UBS, Morgan Stanley, Goldman Sachs. But that’s Noble in an evil mirror dimension. In our world, he is a true crypto guy, talking to me in a t-shirt with bicycles in the back of the room. He turned from the Dark Side and joined the rebels.
He is known for his popular YouTube podcasts and TV appearances. Currently, he is a senior market analyst at Token Metrics.
Wall Street career
While studying economics (1987–1991) at Rutgers University in New Jersey, he managed to wangle one of only two sought-after internships at the time at JP Morgan’s forex desk on Wall Street. Noble started off when trading technology was primitive and lots of analysis was done by hand on paper. In August 1990, he was put in charge of the desk, while everyone went on holiday, “‘Cos nothing happens in August, let the kid fill in.” Then Iraq invaded Kuwait, and all sorts of craziness broke out in the markets.
John J. Murphy’s Charting Made Easy.“The price volatility seemed so extreme to me. I had no idea how anyone kept track of this. So, I went to the technical analyst who was attached to the currency unit. I said, ‘I bet everybody comes to you looking for help trying to figure this out.’”
