Few factors influence Bitcoin price beyond simple speculation and supply and demand dynamics. However, the energy costs associated with mining each Bitcoin appear to have a strong impact on where and when the asset bottoms.
The leading cryptocurrency by market cap bottomed when Bitcoin went below this key cost of production metric back in 2018, then bottomed once again when it fell below in late 2019. Bitcoin has just touched that “miner’s bottom” for a third time – could this be a “third time’s a charm” situation that sends finally Bitcoin into a new bull market?
Bitcoin Reaches “Miner’s Bottom,” Breakeven With Cost of Production
Bitcoin is a unique asset unlike anything else to ever exist before it. It has such disruptive potential, and the entire market of crypto assets was designed since each trying to unseat the reigning champion of the cryptocurrency market.
But because Bitcoin and other crypto assets aren’t currently widely adopted, and have futuristic use cases allowing users can be their own banks, valuations are currently primarily speculative.
Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?
Some analysts have attempted to make sense of Bitcoin’s long-term value by analyzing the asset’s pre-programmed digital scarcity, but the results are mixed at best.
One metric, however, appears to have serious validity in establishing a baseline value for the first-ever cryptocurrency: the cost of production.
BTC is rewarded to miners for powering the underlying protocol and validating each block being added to the blockchain.
But it costs money in energy consumption to validate each block, so miners must be keenly aware of the cost of production and its proximity to the price of each BTC.
This“miner bottom” is the breakeven price where the price of Bitcoin reaches the same it costs to produce each BTC.
Is This The Final Buy Signal Before the Bull Run?
The theory is at that point, miners have little incentive to sell their Bitcoin at a loss. The slowing supply from the most substantial sellers in the market being dumped causes demand to eventually overtake supply, and the asset value rises again.
Bitcoin went far below this miner’s bottom in December 2018 when it set its bear market bottom. Then when Bitcoin fell below $6,500 in December 2019, the asset once again went below this cost of production baseline.
The cryptocurrency is there once again and may have found yet another local bottom. This latest bottom would act as yet another higher low, suggesting that Bitcoin is on its way into a new bull trend.
Related Reading | The Fate of Bitcoin Rests On This Seven-Year Secular Bull Market Support
With the halving ahead, the cost of production is projected to double when the supply miners receive of BTC for mining each block is slashed in half.
Miners will likely halt selling once again, and it could fuel the next major Bitcoin bull market. origin »
Bitcoin Magazine
Bitcoin Miner Bitfarms (BITF) to Exit Bitcoin Mining, Pivot to AI Computing
Bitfarms is winding down its Bitcoin mining over two years to focus on AI and high-performance computing infrastructure amid falling crypto profits.
Bitcoin mining has become one of the most competitive sectors in the digital asset economy, evolving from small-scale operations into large, industrialized networks that now secure the entire Bitcoin The post The future of Bitcoin mining, sustainable high-performance computing, and AI: An Interview with Cango Inc. CFO appeared first on AMBCrypto.
In the rapidly evolving world of cryptocurrency, Bitcoin remains the most prominent digital asset, attracting investors and miners worldwide. As mining Bitcoin individually becomes increasingly expensive and complex, cloud mining
The post Secure Bitcoin Mining Options in 2025: 6 Platforms Reviewed appeared first on CryptoNinjas.
Key Takeaways
How are Bitcoin mining stocks performing compared to Bitcoin itself?
Bitcoin mining stocks have outperformed Bitcoin in September, with the likes of CIFR, WULF, IREN, BITF, and HIVE riThe post Bitcoin vs Bitcoin mining stocks - Where should you put your money right now? appeared first on AMBCrypto.
Members of France’s National Rally have championed Bitcoin mining as a way to monetize France’s surplus nuclear electricity. According to French media outlet Le Monde, far-right lawmakers have positioned Bitcoin mining as a practical solution to longstanding energy and economic…
In the high-pressure, high-temperature world of Bitcoin mining, most of the focus understandably goes toward optimizing uptime, reducing latency, maximizing hashrate, and keeping hardware cool. WhetheThe post Why drinking water is crucial in a Bitcoin mining facility appeared first on AMBCrypto.
Mining company Green Minerals has entered a structured financing agreement with LDA Capital worth 250 million Norwegian kroner. The funds will be used to boost its Bitcoin treasury. Through a press release, the deep sea mining firm has been granted…
Pakistan changes stance on cryptocurrencies and now wants to create a regulatory framework for crypto investments
Surplus energy to be redirected to Bitcoin mining and AI centers, leveraging unThe post Pakistan taps surplus power for Bitcoin mining amid global market's recovery appeared first on AMBCrypto.
STG Energy provides Bitcoin mining services that have never been more accessible or profitable as Bitcoin prices exceed $92,000. Users can mine Bitcoin alongside Litecoin and Bitcoin Cash through the company’s secure cloud mining system which eliminates the requirement of costly mining equipment.
Elon Musk’s SpaceX will send a four-person crew on a polar orbit mission, funded by the founder of the Bitcoin mining pool F2Pool, Chun Wang. A crew of four is preparing for an unusual journey into space, one that no…
The partnership could significantly impact the Bitcoin mining landscape, potentially influencing market dynamics and regulatory discussions.
The post Trump’s sons join forces with Hut 8 to build ‘American Bitcoin’ — a Bitcoin mining venture appeared first on Crypto Briefing.
The race to secure Bitcoin appears to be entering a more measured phase, with industry data indicating that mining activity might not increase at the same pace seen in recent years.
A new Bitaxe device comes to market, Heatbit devices are helping everyday users mine bitcoin while keeping their homes warm, and 5,500 open-source mining developers continue to work together to push the home Bitcoin mining industry forward.
Bitcoin mining stocks could see massive growth in 2025, according to a report by H.C. Wainwright & Co. The equity research estimates that the market cap of Bitcoin mining companies will surpass $100 billion in 2025, up from $36 billion…
Bern's exploration of Bitcoin mining could position it as a leader in crypto innovation, potentially boosting local economy and renewable energy use.
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In early November, Bitcoin mining profitability experienced a notable uptick, with the hash price—a key indicator of miner earnings—rising by 29% since the end of October.
Thailand charges two for stealing over $280,000 in electricity for illegal Bitcoin mining. Thai authorities have cracked down on illegal Bitcoin (BTC) mining operations, shutting down nine illicit sites and arresting two suspects on charges of electricity theft, valued at…
Bitcoin mining provides an opportunity for independent power producers to sell their electricity on a worldwide market, according to Sangha Renewables President Spencer Marr.
Three of the newest members of BRICS—Argentina, the UAE, and Ethiopia—have begun mining Bitcoin using government resources, according to Matthew Sigel, Head of Digital Assets Research at investment firm VanEck.
Bitcoin mining, a complex activity that requires adding data to the blockchain, has been the subject of complaints. While it’s arguably a lucrative trade for some, it impacts the local electricity grid.
Swan Bitcoin has sued Proton Management Ltd. and six former employees accusing them of a coordinated theft of its billion-dollar bitcoin mining technology with alleged assistance from Tether.
Swan Bitcoin has accused several former employees of “stealing the crown jewels” from its Bitcoin mining business to create a “counterfeit competitor.”
China sought to completely ban Bitcoin mining within its territory, but a couple of years later, Bitcoin continues to hum along—and it's stronger than it’s ever been.
Cathedra Bitcoin said Bitcoin mining simply hasn’t provided enough shareholder value on a Bitcoin basis over the last three years, which prompted a change in strategy.
Experts argue that this rise in energy bills highlights how Bitcoin mining can contribute to lower overall energy costs by distributing fixed grid expenses across a broader user base.
The post Bitcoin Mining Halt Triggers 20% Electricity Price Surge in Norwegian City appeared first on BeInCrypto.
Bitcoin mining executives from top firms gathered at the HC Wainwright Bitcoin Mining Panel on Sept. 10 to discuss industry trends, challenges, and the future of Bitcoin. The panel, moderated by Anthony Scaramucci of SkyBridge Capital, featured CEOs from prominent mining companies, including Bit Digital, Bitfarms, CleanSpark, Core Scientific, and Marathon Digital Holdings.
As the need to be more eco-friendly becomes ever more apparent, cryptocurrencies have often been sharply criticized for their environmental impact. Being the most well-known of them, Bitcoin has inevitably become tainted with a reputation for the high resource usage required for Bitcoin mining, However, newly released research might paint a slightly different picture and could start changing perceptions around these issues.
Russia's regulatory framework for Bitcoin mining could significantly impact the global crypto market and local economic activities.
The post Bitcoin mining bill advances in Russia, awaits State Duma vote in late July appeared first on Crypto Briefing.
Texas is rapidly becoming a Bitcoin mining hub, butresidents of local towns are experiencing hearing issues, headaches, dizziness, and sleep disturbance. The conflict between the economic interests of Bitcoin (BTC) mining in Texas and the quality of life of its…
Recent developments in the Bitcoin mining industry suggest a significant financial squeeze due to decreased network fees and halved block rewards. These factors are shaping the economic space for companies validating Bitcoin transactions and could potentially force some into selling their digital assets prematurely to remain solvent, according to Kaiko Research. Related Reading: Germany Shakes […]
Bitdeer Technologies announces the development of the SEAL04 chip, an energy-efficient solution for Bitcoin mining expected to achieve a power efficiency of 5J/TH by Q2 2025.
The post Bitdeer unveils new chip for low-power Bitcoin mining appeared first on Crypto Briefing.
The crypto world is exploding! Since Bitcoin and Ethereum ETFs got the green light, everyone's looking for ways to get involved. Forget just buying crypto - imagine earning it passively! AST MininThe post Bitcoin cloud mining platform, AST Mining, offers program for earning Bitcoin appeared first on AMBCrypto.
Recent findings from BitMEX Research have reignited concerns about the centralization of Bitcoin mining. Their study, which cites insights from Bitcoin analyst Alex Bergeron, points out that a single entity now controls the Coinbase outputs for approximately 47% of the network hashrate—a significant concentration that suggests a shift toward oligopolistic tendencies within the Bitcoin mining […]
In Bitcoin mining, the activity’s profitability is significantly influenced by a metric known as the ‘hash price. ’ This metric has recently plummeted to unprecedented levels, causing concerns within the mining community.
PayPal is incentivizing green Bitcoin mining practices by rewarding miners who use renewable energy. This move aims to reduce Bitcoin’s environmental footprint, alongside significant changes to NFT policies and a partnership with Triple-A.
JPMorgan upgraded Cipher and CleanSpark, and cut targets for MARA, RIOT due to the increased risk of shareholder dilution. Bitcoin miners are increasingly diversifying their operations from hashrate to high-performance computing.
Bitcoin Magazine
Bitcoin-miner Bitmain Faces Federal Investigation Over National Security Issues: Report
Bitmain, the Chinese manufacturer behind many of the world’s Bitcoin miners, has been under US national security scrutiny for potential espionage or sabotage risks, including in Trump family-backed ventures, though the company denies any wrongdoing.
Hive Digital stock jumped by over 500% from its April low to its October high; it pivoted to AI and HPC industries. But its Bitcoin mining revenue is still strong.
Bitcoin crossed a watershed moment in its monetary history on Nov. 17, surpassing 19. 95 million mined coins and pushing the network past 95% of its immutable 21 million supply cap. This leaves the network with less than 1.
Cloud mining beats solo mining as Bitcoin climbs, and GBC Mining offers a $20 bonus plus instant hash power for daily BTC earnings with no hardware needed.
Power markets are starting to price Bitcoin mining that can switch on and off as a grid service. Curtailment remains elevated in regions with high renewable penetration, and short scarcity bursts continue to set value for fast demand reduction, which creates room for load that soaks midday surplus and idles during tight hours.
