

Blockchain
Bitcoin miners’ worst days may have passed, but a few key hurdles remain – Crypto News
Bitcoin’s mining industry has been relatively stable compared to the bearish price action and the tumultuous fallout of exchanges and lending companies,
The network’s hashrate dipped slightly toward the end of 2022, primarily due to an unprecedented blizzard in the US, and has since recovered strongly to surpass its previous peak above 270 EH/s. It was particularly encouraging to see that the hashrate is holding well above summer 2022 lows, despite the aftermath of the FTX collapse.
However, despite the recent robustness in a variety of metrics, the mining industry faces many challenges, which will likely restrict its growth moving forward. The hurdles include low profitability, a threat from new-age efficient machines and the upcoming bitcoin halving which will slash block rewards by half.
BTC mining remains a stressed industry
While the hashrate of Bitcoin’s network has improved, miners are still under a lot of stress due to low profitability. The earnings of Bitcoin miners have shrunk to one-third their value from the peak. Before the May 2022 price collapse, miners made more than $0.22 daily per TH/s, a figure which has now dropped to $0.07.
The percentage share of small-sized miners with breakeven prices above $25,000 has Dropped from 80% in 2019 to 2% by 2022, which is a positive sign of an end to miner capitulation.
The sustainability of mid-sized miners with breakeven prices between $20,000 and $25,000 depends on the capital efficiency of participants. The struggle for them is to survive until the bullish trend commences, hoping to benefit from the next bullish cycle.
The significant drop in prices of mid-sized machines suggests that their demand has slowed down. according to CoinShares, reducing machine prices will allow capital-rich entities to “reduce their capital expense cost per TH/s and increase output without incurring additional ongoing cash-costs” by buying hardware at a cheap rate. However, this will come at the expense of existing miners, which will likely restrict the industry’s growth as a whole.
Furthermore, the firms with weak financials will also not be able to take advantage of the slowdown by raising debt, especially as central banks globally are hiking borrowing interest rates.
Independent research firm, The Bitcoin Mining Block Post, arrived at a similar conclusion about the industry’s growth in 2023. Their analysts predict that the cost of miners “will move sideways and gradually trend upwards” as it did in 2020.
Pressure from more capable ASICs and the upcoming BTC halving
The existing Bitcoin mining industry also faces significant challenges from the arrival of new and efficient machines and reduced rewards after the halving in 2024.
Since June 2021, more energy-efficient miners have arrived, offering more than 100TH/s per joule. This trend accelerated by Q2 2022 with the launch of new hardware equipment that had more than twice the efficiency of existing miners at the time. The breakeven prices of some of these miners are below $15,000.
The increase in efficiency will likely flatten out for the next couple of years due to the limitations of the microprocessor chip size. The most efficient miner produced by Bitmain, the S19 XP,has a 5nm chip. Going below this size significantly increases the cost and risk of production errors.
Still, as more of these types of equipment flood the market, the mining difficulty for existing players will increase and slowly drive them out. Thus, only competitive miners who can successfully expand and sustain operations will survive this phase.
On top of that, the miners will also have to prepare for the March 2024 halving event. CoinShares research pointed out that, given how halving will directly impact the miners, “a potential strategy by mining companies may be to focus on reducing operating expenses above their cash-costs (including overhead, debt, hosting, etc.).”
Will miners realize profits in 2023?
The above data suggests that the worst days of minor capitulation could be over. However, the industry remains under considerable pressure, under which BTC accumulation is challenging.
Miners continue to be prominent sellers in the market. An update from Coinbase Institutional on Jan. 19 quoted that, “crypto miners have started to be a bit more aggressive in selling.”
The one-hop supply metric of Bitcoin miners is calculated from the total holdings of addresses that received tokens from mining pools. The indicator recorded a slight uptick in miner balance since the start of 2023. However, the total amount is still below 2019 lows, pointing to the challenges of a swift recovery in conditions unless the price favors miners.
The fact that miners are continuing to sell with little hope of recovery in the short-term could ruin the hopes of those expecting a parabolic run in 2023. Nevertheless, the good news is that the worst days of capitulation might be behind. While slow and steady, miners can continue to grow, start accumulating again, and help stage the next bullish rally.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
-
Blockchain1 week ago
Bitcoin Enters ‘Optimism Stage’—Is a Massive Rally About to Begin? – Crypto News
-
Metaverse1 week ago
Mint AI Summit 2025: How enterprises are using AI – Crypto News
-
Blockchain1 week ago
Bitcoin Enters ‘Optimism Stage’—Is a Massive Rally About to Begin? – Crypto News
-
Blockchain2 days ago
Stablecoins Pull Away From Crypto – Crypto News
-
Metaverse1 week ago
AI democratization crucial for India’s global leadership, say experts at Mint AI Summit 2025 – Crypto News
-
Cryptocurrency1 week ago
Ripple Grants $50 Million to Nonprofit Aiming to Raise US Crypto Awareness – Crypto News
-
Cryptocurrency3 days ago
MOVE price hikes 7% in 24 hours, 33% up from weekly lows – What next? – Crypto News
-
Cryptocurrency1 week ago
Moonbirds, Reddit Founders Resurrect Social News Site Digg—With an AI Twist – Crypto News
-
others1 week ago
Chainlink Price Jumps Past $15 As Whale Accumulation Signals Strength – Crypto News
-
Cryptocurrency1 week ago
134K Solana unstaked and listed for sale: Decoding SOL’s road ahead – Crypto News
-
Technology3 days ago
Truemarkets Officially Launches as Prediction Market with $TRUE – Crypto News
-
Technology1 week ago
Dogecoin Price Eyes Rally As Wallet Addresses Reach All Time High – Crypto News
-
Cryptocurrency1 week ago
US crypto reserve clarification coming? Wait til Friday. – Crypto News
-
Cryptocurrency1 week ago
Ethereum’s large purchase: Potential rebound or investor trick? – Crypto News
-
Technology1 week ago
Elon Musk’s Grok AI goes rogue once again, calls US President Donald Trump a Russian asset – Crypto News
-
Technology1 week ago
Nothing Phone 3a Pro launched at ₹29,999: Here is how it fares among 5 peers – Crypto News
-
Cryptocurrency1 week ago
This Ripple Metric Explodes by Over 600% in a Week: XRP Price Pump Incoming? – Crypto News
-
Technology1 week ago
Arbitrum Price Rally 14% as Robinhood Listing Fuels Market Optimism – Crypto News
-
others1 week ago
No surprises expected at the ECB meeting – Crypto News
-
others1 week ago
Veteran Trader Believes Bitcoin Low Is In, Says Downside Volatility Presenting Bullish Opportunities – Crypto News
-
Blockchain1 week ago
Ethereum price ‘double top’ hints at 42% drop as ETH bull market ends – Crypto News
-
others1 week ago
Dow Jones bounces as tariff threats give way to concessions – Crypto News
-
others1 week ago
Price increases ahead of tariffs could spell trouble for inflation – Crypto News
-
others1 week ago
US Government Blacklists Slew of Bitcoin and Monero Addresses Linked to Man Accused of Running Darknet Marketplace – Crypto News
-
Cryptocurrency1 week ago
Bitcoin, Ethereum Rally as Markets Weigh Trade Tensions and China’s Stimulus Push – Crypto News
-
Technology4 days ago
Wayve Reportedly Ready to Roll Out Self-Driving Tech – Crypto News
-
Cryptocurrency3 days ago
BC.GAME Team Compete for Top Prizes as BC.GAME ESPORTS Expands Its Line-Up – Crypto News
-
Technology1 week ago
Best refrigerators under ₹20000 in March 2025: Top budget friendly, feature packed picks for budget conscious buyers – Crypto News
-
Cryptocurrency1 week ago
PI Network hits major milestone as $PI & XRP whales move to new AI agent launchpad on Ripple – Crypto News
-
Cryptocurrency1 week ago
US Sanctions Iranian Operator of Nemesis Darknet Marketplace – Crypto News
-
Technology1 week ago
Analyst Predicts Ethereum Price Rally to $4K As Devs Fix Pectra Testnet Bug – Crypto News
-
Blockchain1 week ago
Bitcoin Price Suffers Bearish Deviation After Filling CME Gap, Is This Good Or Bad? – Crypto News
-
Cryptocurrency1 week ago
Tariff fears wipe out SOL’s weekend gains – Crypto News
-
Cryptocurrency1 week ago
US Senate Votes to Repeal IRS DeFi Reporting Rule – Crypto News
-
Technology1 week ago
Mt Gox Moves $1B BTC To Unknown Wallet As Bitcoin Price Hits $92K – Crypto News
-
Cryptocurrency1 week ago
What’s the strike price on Trump’s put? – Crypto News
-
Cryptocurrency1 week ago
Exclusive: Seismic raises $7M in round led by a16z Crypto – Crypto News
-
Technology1 week ago
Apple MacBook Air (2025) now available at a MASSIVE ₹10,000 discount: Bank offers, sale and more – Crypto News
-
Blockchain5 days ago
XRP Price Chart Signals Trouble – Is A Drop To $1.20 Possible? – Crypto News
-
Technology5 days ago
Beware the dangers of data – Crypto News
-
Cryptocurrency5 days ago
How Freepik Transformed From a Stock Image Platform Into a Generative AI Powerhouse – Crypto News
-
Technology5 days ago
Mint Primer: AI in the air: How gadgets will change forever – Crypto News
-
Technology4 days ago
Industry 5.0, AI and India: Schneider Electric’s Barbara Frei on making factories smarter – Crypto News
-
Cryptocurrency3 days ago
California Shuts Down 26 Crypto Scam Sites Tied to $4.6 Million in Losses – Crypto News
-
Cryptocurrency3 days ago
Ethereum Price Analysis Ahead of Upcoming Blood Moon Lunar Eclipse – Crypto News
-
Business3 days ago
Here’s Why Investors Are Revenge Shorting This Meme Coin Even After 30% Crash – Crypto News
-
Technology1 week ago
Robert Kiyosaki Predicts Bitcoin Will Resolve American Financial Woes – Crypto News
-
Technology1 week ago
Nothing Phone 3a Pro vs Nothing Phone 3a: Should you pay extra Rs.5000? – Crypto News
-
others1 week ago
Pound Sterling strengthens against US Dollar as US ADP Employment misses estimates – Crypto News
-
Blockchain1 week ago
2.23 Million Chainlink Moved To Exchanges In Two Weeks – Selling Pressure Incoming? – Crypto News