Only five mining rigs remain profitable as bitcoin prices dropped below $58,000, potentially signaling a local bottom for the market.
Miners, who provide computing power to blockchain networks are facing significant operational costs.
Only five mining rigs are profitable for their operators as bitcoin (BTC) slumped to the $54,000 mark this week, creating a scenario that could mark a “local bottom.”
“At a rate of $0.08/kWh, ASICs less efficient than 23 W/T operate at a loss,” mining giant F2Pool said in a graph released early Friday. A kWh or kilowatt-hour measures the energy usage of an electrical device or load.
F2Pool’s graph shows four of Antminer’s various rigs and one Avalon rig that are profitable as long as prices are above $53,100. All other miners are now costing more to run than the rewards received by operators.
Miners are entities that supply computing power to any blockchain network in return for “rewards” in the form of tokens. These rewards are continually sold by miners to cover operational costs – which are fairly intensive, with some miners even filing for bankruptcy in the past few years.
Miners were a major source of bitcoin selling pressure in June with over $1 billion worth of BTC sold over two weeks as prices ranged between the $65,000 and $70,000 levels, as previously reported.
Meanwhile, some market observers say miners’ unprofitability could mark a local bottom as there is less selling pressure.
“Bitcoin miners are (an) inch away from capitulation, S19 break even at 52k,” said Dovey Wan, partner at crypto fund Primitive Crypto, in an X post on Friday. “This is a perfect setup for local bottom.”
