{"id":460530,"date":"2022-06-10T10:44:40","date_gmt":"2022-06-10T07:44:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\/"},"modified":"2022-06-10T10:44:40","modified_gmt":"2022-06-10T07:44:40","slug":"30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\/","title":{"rendered":"# $30K BTC price has &#8216;severe impact&#8217; on Bitcoin miner profits \u2014 analysis"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3664ec5858f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3664ec5858f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\/#%E2%80%9D_30K_BTC_price_has_%E2%80%98severe_impact_on_Bitcoin_miner_profits_%E2%80%94_analysis_%E2%80%9C\" >&#8221; $30K BTC price has &#8216;severe impact&#8217; on Bitcoin miner profits \u2014 analysis &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\/#Miner_production_cost_faces_off_with_BTC_price\" >Miner production cost faces off with BTC price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\/#Bitcoin_miner_ROI_expands_in_May\" >Bitcoin miner ROI expands in May\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_30K_BTC_price_has_%E2%80%98severe_impact_on_Bitcoin_miner_profits_%E2%80%94_analysis_%E2%80%9C\"><\/span>&#8221; $30K BTC price has &#8216;severe impact&#8217; on Bitcoin miner profits \u2014 analysis &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Bitcoin (BTC) is squeezing its miners this month as suppressed prices threaten to impact profitability.<\/p>\n<p>The latest data shows both narrowing profit margins and miners waiting longer to recoup their initial investment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Miner_production_cost_faces_off_with_BTC_price\"><\/span>Miner production cost faces off with BTC price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While Bitcoin miners have largely held off on major distribution as BTC\/USD descends from all-time highs, the picture now <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears precarious.<\/p>\n<p>Calculations from on-chain analytics platform CryptoQuant reveal that miners\u2019 production price \u2014 how much it costs to mine a single bitcoin \u2014 could be right where current spot price resides.<\/p>\n<p>While \u201craw\u201d costs may be around $22,000 per BTC for miners in North America, which is home to the lion\u2019s share of hashing power, additional costs could put the total at more like $30,000.<\/p>\n<p>\u201cWe estimate cost basis for bitcoin miners in North America around $22K per bitcoin mined. This estimate includes the direct cost of mining and S&amp;A expenses. It does not include depreciation and amortization charges,\u201d CryptoQuant senior analyst Julio Moreno confirmed to Cointelegraph in private comments.<\/p>\n<blockquote><p>\u201cIf depreciation and amortization charges are included then the cost basis for mining bitcoin is at around $30K, basically at the same level as current bitcoin price.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/019e8962-b468-4cc8-a48b-45b4bf08348e.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin miner exchange flows vs. BTC\/USD chart. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>Fears of a \u201ccapitulation\u201d event among miners should spot price deteriorate remain a talking point. So far, however, only the May dip below $24,000 saw a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/asset\/btc\/chart\/inter-entity-flows\/miner-to-exchange-flow-total?fromMiner=all_miner&amp;toExchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=column\">noticeable reaction<\/a> from the mining community.<\/p>\n<p>\u201cOur data shows increasing bitcoin flows from miners to exchanges during March 2022 and then a sharp spike in flows during the first week of May. This is in line with bitcoin selling reported by some mining companies in Q1 2022,\u201d Moreno added.<\/p>\n<p>In January, miners&#8217; production cost appeared to be at around $34,000, separate data showed.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_miner_ROI_expands_in_May\"><\/span>Bitcoin miner ROI expands in May\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Continuing, mining firm Luxor\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/data.hashrateindex.com\/chart\/asic-price-index\">Hashrate Index<\/a> metric produced more interesting insights.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin miners say NY ban will be ineffective and &#8216;isolate&#8217; the state<\/em><\/strong><\/p>\n<p>The Index, which shows the current price in USD per terahash (TH) according to ASIC miner efficiency, confirms that that cost area has been decreasing incrementally since December 2021.<\/p>\n<p>At the same time, findings by <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user @XBTJames show, the time taken for the average participant to enter profit by seeing return on investment (ROI) is expanding.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">ASIC pricing, measuring in USD-per-TH, has been coming off materially since late-2021, but pricing measured in static days-to-ROI (ASIC USD price-per-TH \/ USD daily revenue-per-TH [aka &#8216;hashprice&#8217;]) tells a different story. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/uFx19GRa2w\">pic.twitter.com\/uFx19GRa2w<\/a><\/p>\n<p>\u2014 XBT James (@XBTJames) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/XBTJames\/status\/1530226172185006080?ref_src=twsrc%5Etfw\">May 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cTime to ROI has been increasing steadily since the &#8216;China Ban&#8217; ASIC firesale last year. While USD pricing on ASICs has come down, the selloff in BTC and the increase in difficulty have combined to severely impact mining profitability,\u201d the account explained in a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of tweets.<\/p>\n<p>XBTJames added that higher BTC prices would be needed to reduce the pain for miners, including new market players and those looking to expand their hashing capabilities.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/28053baf-7a10-4eb8-ad2c-4509e218ae4a.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin ASIC Price Index vs. BTC\/USD chart (screenshot). Source: Hashrateindex.com<\/em><\/figcaption><\/figure>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/30k-btc-price-has-severe-impact-on-bitcoin-miner-profits-analysis\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; $30K BTC price has &#8216;severe impact&#8217; on Bitcoin miner profits \u2014 analysis &#8220; Bitcoin (BTC) is squeezing its miners this month as suppressed prices threaten to impact profitability. The latest data shows both narrowing profit margins and miners waiting longer to recoup their initial investment. Miner production cost faces off with BTC price While&#8230;<\/p>\n","protected":false},"author":1,"featured_media":460531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMGM1MWQ0NjUtMDBjMi00NmI0LThkODUtYmQ0ZDUxOTRiMTg1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,73785],"class_list":["post-460530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=460530"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/460531"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=460530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=460530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=460530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}