Bitcoin news: BTC mining faces price risk, not power cost shock, as oil tops $100

A recent analysis by Luxor’s Hashrate Index suggests that while oil prices have surpassed $100 a barrel due to Middle East tensions, the direct impact on Bitcoin mining costs will likely be limited. Only 8% to 10% of the global Bitcoin hashrate operates in power markets closely tied to oil prices, primarily in Gulf states like the UAE and Oman. These regions rely on natural gas derived from oil production for electricity, directly linking power costs to crude oil prices. However, the broader macroeconomic consequences of rising oil prices, such as triggering risk-off behavior in financial markets, pose a greater threat to Bitcoin’s price. Luxor’s data shows that hashprice, a measure of miner profitability, recently hit an all-time low due to a drop in Bitcoin’s price, demonstrating that miners are more sensitive to price fluctuations than electricity costs.

(Source：CoinDesk)