Bitcoin, mining at a standstill due to the crypto crisis


Bitcoin, mining at a standstill due to the crypto crisis
Written by madishthestylebar

ASICs on the verge of falling – The return of the price of the Bitcoin (BTC) at $20,000 would negatively impact its hash rate. Some mining machinery could be put stopped if the bulls fail to regain key levels.

Antminer: first victims of a $20,000 bitcoin

Machines ASICs would not more profitable following the Bitcoin price crash, June 13, 2022.

Given the current context, the Bitdeer mining platform has published a “stop price list” theoretical per machine. These prices are based on the cost of daily electricity consumption and the profit over 24 hours.

Bitdeer’s Stop Price List – Source: Twitter

If the price of Bitcoin fell below these stop prices, miners would normally have to disconnect certain machiness “for lack of profitability”. So what are the miners that should no longer work today given the price of Bitcoin? The cryptocurrency price is currently at $20,725.

In this case, the Antminer S17+/73T and S17+/67 would not more profitable at this stage. Indeed, their stop prices sit at $22,065 and $25,085 respectively.

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A $10,000 bloodbath: everyone will go through it

The other machines cited in Bitdeer’s list are, at the moment, profitable. However, the Antminer S19 and S19j as well as Whatsminer M30S+ and M30S++ could be the bears’ next victims.

Their stop prices are over $17,000. However, forecasts based on the magnitude of the declines in March 2020 after the break in the logarithmic channel, defend the possibility from a fall of Bitcoin price at $17,000.

If such a scenario were to materialize, only the Antminer S19 Pro and XP would then still be profitable. These 2 mining machines are not out of danger. Their stop prices are in the $11,000-17,000 range. However, some traders do not rule out the possibility of a fall in the Bitcoin in the $8,000-10,000 zone.

Bitcoin mining: Stop the machines, but no capitulation

These possible stoppages of the mining machines contrast with the supposed current lack of capitulation in the area.

The Hash Ribbons indicator shows that miners have no not yet sold massively their bitcoins. This indicator created by the CEO of Capriole, Charles Edwards, is based on the moving average of 30 and 60 days of the hash rate.

So far, this 30-day moving average has not crossed above the 60-day moving average. In the absence of such a crossing, the miners would therefore continue to hold their own, in keeping their bitcoinsdespite significant declines in the price of cryptocurrency.

However, it is necessary to be careful in the interpretation of all these theoretical indicators. These metrics do not necessarily reflect reality. If that were the case, miners hoarding their bitcoins, while stopping the machines, would simply be a paradox difficult to explain.

These scenarios on shutting down all machines in Bitdeer’s list seem “too catastrophic” to be realistic. But with a Fed raising interest rates to the benefit of the dollar and to the detriment of risky assets, and in the event of a possible failure of a major crypto player, even the most extreme patterns can be realized.

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