Bitcoin miners face worst profitability crunch on record, analyst says
Bitcoin miners are experiencing their toughest operating environment, with revenue falling below median all-in costs, according to an analyst.Summary
Bitcoin miners are currently facing the most severe operating environment in the asset's history, as potential revenue per PH/s has dropped to about $35, which is below the median all-in cost base of $44 for major public miners. This "all-in cost" includes electricity, depreciation, hosting, and capital expenditure. Analyst Timothy Misir noted that payback periods are now extending beyond 1,000 days, exceeding the time until the next Bitcoin halving, increasing capitulation risk for smaller miners.
Despite this pressure, crypto markets saw a modest liquidity rebound after a flash crash, with Bitcoin recovering toward $87,000. However, this bounce lacks strong sponsorship from miners or whales. While liquidity has returned following the Fed's end of quantitative tightening, market momentum is weak, and traders are bracing for volatility, evidenced by rising implied volatility and increased positioning in put options, although the probability of a catastrophic year-end drop has slightly decreased.
(Source：The Block)