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Bitcoin network \u201chorsepower\u201d continues to climb, which is good news for its security but bad news for miners who are now facing more competition than ever.\u00a0<\/span><\/p>\n Bitcoin\u2019s hashrate hit a new peak on October 12 of 447 exahashes per second, according to Blockchain.com.\u00a0<\/span><\/p>\n Bitinfocharts has a slightly higher average figure of 481 EH\/s, but both are in agreement that it is the highest the metric has ever been.\u00a0<\/span><\/p>\n Another all-time high for Bitcoin\u2019s hash rate: pic.twitter.com\/ERhI5g12Hs<\/a><\/p>\n \u2014 Will Clemente (@WClementeIII) October 12, 2023<\/a><\/p>\n<\/blockquote>\n Hashrate has <\/span>climbed<\/span><\/a> 77% since the beginning of this year and is up 170% since the bull market peak in November 2021. This means that it is now harder than ever to mine the next block on the chain.<\/span><\/p>\n Moreover, <\/span>the next <\/span>difficulty<\/span><\/a> adjustment in a few days could be as high as +7.4%. Difficulty is a measure of the competition between miners, and it is also at an all-time high of 57.3T.\u00a0<\/span><\/p>\n The net effect is a decrease in mining profitability, also known as hashprice. Hashprice, which refers to the expected value of 1 TH\/s of hashing power per day, has fallen to $0.06 per TH\/s per day.\u00a0<\/span><\/p>\n This is down 85% since the bull market peak of $0.40 per TH\/s per day as mining profitability slumps.\u00a0<\/span><\/p>\n Bitcoin miners are currently being hit with a triple whammy of high hash rates and difficulty, low asset prices, and high energy costs.\u00a0<\/span><\/p>\n Moreover, JPMorgan predicted that hash rates would drop by 20% after the next halving in late April or early May.<\/p>\n \u201cNot all miners created equal. Miners vary by scale, operating efficiency, access to capital and growth prospects. We believe CLSK, our top pick, offers the best balance of scale, growth potential, power costs, and relative value. MARA is the largest operator but has the highest\u2026 pic.twitter.com\/Jj3CseRI6M<\/a><\/p>\n \u2014 S Matthew Schultz (@smatthewschultz) October 11, 2023<\/a><\/p>\n<\/blockquote>\n Earlier this week, trader Oliver Velez pointed out that the United States has the largest share of global hashrate at 40%. Furthermore, asset management giant BlackRock has invested in several of the largest Bitcoin mining firms \u2013 Riot Platforms, <\/span>Marathon Digital<\/span><\/a>, Cipher Mining, <\/span>Hut 8, <\/span>and Terawulf. It also lent money to bankrupt Bitcoin miner Core Scientific in December.<\/span><\/p>\n \u201cIt is clear that the U.S. is playing to win the hashrate war,\u201d he said.\u00a0<\/span><\/p>\n The U.S. now has 40% of the #Bitcoin<\/a> hash rate. Black Rock is now one of the largest owners of publically traded ##BTC<\/a> miners.<\/p>\n It is clear that the U.S. is playing to win the hashrate war. Despite these numbers seeming large, all publically traded Bitcoin miners combined\u2026 pic.twitter.com\/2LhVC3BrY1<\/a><\/p>\n \u2014 Oliver L. Velez \u26a1\ufe0f 13%\u2019er Bitcoiner (@olvelez007) October 11, 2023<\/a><\/p>\n<\/blockquote>\n If Bitcoin prices do not improve soon, there may be another miner capitulation. The upcoming halving in around six months\u2019 time will double the headache for miners as the block reward is halved.\u00a0<\/span><\/p>\n It was predicted that BTC prices would need to reach around $90K for mining to remain profitable at current levels.<\/span><\/p>\n However, markets are going in the opposite direction at the moment. BTC remains <\/span>unchanged<\/span><\/a> on the day at $26,844; however, it has lost 4% since last weekend.\u00a0<\/span><\/p>\n There is solid support at the $26K level, which could be where it is heading in the short term.\u00a0<\/span><\/p>\n\n
Pressure on Miners\u00a0<\/strong><\/h2>\n
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BTC Price Outlook\u00a0<\/strong><\/h2>\n
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