The last three months of 2022 are also not favorable to Bitcoin. The energy supply issues in North America and Europe are also affecting the Bitcoin market. As a result, the hash price has decreased significantly. It has also been shown in the new Q3 mining report by Hashrate Index. Moreover, the price of producing one BTC has increased compared to previous resource consumption.
The hash price in the industry determines the market value per unit of hashing power. This is calculated when the dollar is divided by each terahash per second for each day. This rate is affected by the hindrance in mining and the BTC value. When the American summer resulted in decreased hash rate due to heat waves, the price of BTC was enhanced. But now, the price of BTC has gone down again to $20,000. During September, the hash rate increased again, leading to the hash price value becoming one of its lowest.
The cost of industrial electricity has been enhanced by 25%, which has made its value jump from $76.20 megawatt-hour to a new value of $94.30 megawatt-hour. This increase came between July 2021 to July 2022. The American miners have been affected by it directly. Now the hosting service providers are also getting influenced by it. They are charging more power prices for the hosting. Currently, when the hash price comes down, some midlevel equipment holder miners are not even getting the chance of making breakeven price margins. Before that, retail miners used to sell or leave the rigs that were not producing profits anymore. However, now the liquidation process of these assets has also become an issue. The credit can be given to the reduced prices of BTC mining value. This decreasing trend has been seen throughout this year.
The situation has forced some miners to sell their BTC shares so they can run their production this year. This indicates severe financial crisis issues for the miners. However, there is still some hope left as miners’ trend of selling BTC holdings saw some decrease in August and September.
