On July 5, Bitcoin fell below $54,000, losing more than 6% in the past 24 hours due to growing bearish pressure. The market’s decline intensified after Mt. Gox, an early cryptocurrency exchange that went bankrupt more than a decade ago, began repaying its customers after a lengthy bankruptcy process.
The recent decline has made many Bitcoin miners unprofitable.
According to the latest Data From f2pool, only six mining machines are still profitable when the Bitcoin price drops below $56,000. These machines include the Antminer S21 Hyd, S21, A1466I, S19 XP Hyd, S19 XP, and Whatsminer M56S++.
The data shows that at an electricity rate of $0.08 per kilowatt-hour (kWh), ASICs with an efficiency of less than 23 watts per terahash (W/T) are operating at a loss.
It is important to note that miners have a significant amount of Contributed Due to the selling pressure on Bitcoin, more than $1 billion worth of crypto assets were dumped when the price fluctuated between $65,000 and $70,000.
Some market analysts suggest that the current unprofitability of mining companies may indicate a local bottom, where lower profitability may reduce selling pressure.
Experts also point out that the network is showing signs of miner capitulation, a period marked by miners ceasing operations or selling a portion of their BTC reserves.
Historically, this phase has been associated with Bitcoin prices hitting their lowest levels, after which the asset typically begins an upward trend.
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