If Bitcoin Drops Further, Some Miners May Switch Off — Antpool Data Explains Why

Key Takeaways

• Bitcoin astatine $78,000 is nearing shutdown prices for galore mid-tier miners similar S19 XP+ and M60S.

• Antminer S21 bid rigs could endure losses if BTC drops to the $69,000–$74,000 range.

• Efficient models similar S23 stay profitable adjacent astatine overmuch little prices astir $44,000.

Bitcoin is trading astatine $78,489 pursuing a volatile slump, putting miner profitability connected a knife’s edge.

If BTC slides further beneath $69,000–$74,000, mid-tier rigs whitethorn scope a tipping point, forcing a question of shutdowns.

This could trim web hashrate, trigger trouble adjustments, and ripple crossed the broader market.

A further slump successful Bitcoin’s terms could spark a miner exodus, arsenic nett margins shrink.

Recent information from Antpool, a starring Bitcoin mining pool, shows that galore fashionable rigs are operating adjacent their profitability thresholds based connected existent web trouble and an assumed energy outgo of $0.08 per kWh.

Bitcoin mining profitability depends connected the delicate equilibrium betwixt gross from artifact rewards and transaction fees versus operational costs—primarily electricity.

The “shutdown price” is the BTC level wherever regular operating costs lucifer regular revenue. Below this, miners are amended disconnected turning disconnected machines than taking losses.

For instance, if energy accounts for 22% of a rig’s existent revenue, the shutdown terms is 22% of Bitcoin’s price.

Several older oregon mid-tier rigs, including Antminer S19 XP+ Hyd, Whatsminer M60S, and Avalon A1466I, are dangerously adjacent to breaking even.

These machines devour much powerfulness comparative to their output.

At Bitcoin’s existent $78,000 level, they make small to nary profit—or whitethorn adjacent beryllium operating astatine a flimsy loss.

The Antminer S21 series, a important contributor to planetary mining hashrate, has shutdown prices betwixt $69,000 and $74,000 per BTC.

A driblet of 10–15% from existent levels could propulsion galore of these rigs offline.

Newer, high-performance rigs similar the Antminer U3S23H and S23 Hyd stay profitable adjacent if Bitcoin falls beneath $44,000, acknowledgment to their superior vigor efficiency.

These machines tin upwind terms drops and enactment online longer, gaining an vantage implicit little businesslike competitors.

When unprofitable machines powerfulness down, the wide web hashrate declines.

Bitcoin’s protocol automatically adjusts trouble downward; the adjacent adjustment, expected astir Feb. 8, could trim trouble by 14–18%.

This makes mining easier and much profitable for remaining operators.