Bitcoin Miner Hash Price Drops to New All-Time Low; Will It Impact BTC Price?

Ashish Kumar
November 18, 2022
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
96000 BTC Options Expiry Sets Max Pain Price At $61,000, What's Next?

The global digital asset market is dealing with the after effects of the massive collapse of FTX. As per reports, more than $100 billion vanished from the market in just a matter of days. However, its shockwaves have now reached the Bitcoin miners.

Advertisement
Advertisement

Bitcoin miners bal on a decline

Glassnode reported that the Bitcoin miner hash price has dropped to a new all time low. It now stands at $58.3K per Exahassh per day. BTC prices have dropped by more than 76% from the peak. BTC price drops have left the mining industry under immense pressure.

FTX collapse news which broke last week urged the Bitcoin miners to distribute additional BTC. As per the data, miners moved additional 8.25K Bitcoins to shore up their balance sheets. Now, the miners’ treasuries hold around 78K BTC. However, it has erased all balance growth in 2022.

Data depicts that Bitcoin miners are spending at a massive rate of 135% of the daily issued coins. This suggests that miners on aggregate distribute all 900 freshly minted BTC. Meanwhile, they are also distributing additional 315 BTC from their treasuries each day.

Advertisement
Advertisement

BTC price drops by 13%

Bitcoin prices have dropped by 13% in the last 30 days. BTC is trading at an average price of $16,765.17, at the press time. Its market capitalization has shrunk to $322 billion.

As per Glassnode, Miners have been forced to liquidate around 9.5% of their treasuries during the last week. They have spent 7.7k BTC. This has been recorded as the sharpest monthly miner decline since 2018. This demonstrates the pro-cyclical nature of Bitcoin miners.

Earlier, Coingape reported that institutional investors are selling Bitcoin holdings amid the FTX crisis. However, the world’s largest cryptocurrency fund, Grayscale Bitcoin Trust Fund (GBTC) is trading under negative premium of 40%.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.