Rising mining difficulty and falling BTC price hurt miners' profits
According to the latest data, bitcoin miners are losing around $19,000 on each mined BTC. This is due to the fact that the mining difficulty has decreased by 7.8%, while the average cost of producing one bitcoin reached $88,000 in mid-March this year.
This dynamics is seriously damaging the miners' business, especially against the backdrop of the overall decline in the bitcoin rate in 2023. Many mining companies have already cut their operations or filed for bankruptcy. For example, the largest public miner Core Scientific filed for bankruptcy in December 2022.
Experts note that the situation may worsen in the coming months if the bitcoin rate continues to fall and the mining complexity increases. This will force many market players to reduce capacities or leave the market completely.
At the same time, some analysts believe that the current situation may be temporary. It is expected that in the medium term, the BTC rate will recover, and the introduction of energy-efficient equipment will help miners reduce the cost of production. But it is unclear how many players will be able to survive the current crisis.