Bitcoin miners are under intense pressure after the difficulty adjustment increases on November 20, 20 while the leading crypto asset has seen a further drop in value against the dollar following the FTX crash. Statistics recorded over the weekend show that the average cost of producing a bitcoin is much higher than the dollar value of bitcoin recorded on spot market exchanges.

Statistics Show Bitcoin’s Production Cost Is Much Higher Than the Leading Crypto Asset’s Dollar Value

On Sunday, Bitcoin.com reported that Bitcoin’s difficulty increased by 0.51% at block 764,064, an increase that pushed the difficulty to an all-time high of 36.95 trillion. After the difficulty switch, the data shows that the overall global hash rate dropped from 317 exahash per second (EH/s) to 233 EH/s.

According to coinwarz.com, the hash rate is currently coasting at 250.59 EH/s. Meanwhile, BTC’s fiat value plummeted after FTX collapsed and filed for bankruptcy protection.

Statistics on November 21, 2022 show that the production cost of Bitcoin is much higher than the current USD spot market value of BTC. Metrics recorded by macromicro.me indicate that the average mining cost today is $19,662, while the dollar value of BTC is recorded at $16,120 notional per unit.

Bitcoin miners face squeeze as BTC production costs remain well above spot market value
Macromicro.me stats for November 21, 2022.

Statistics from macromicro.me show that since October 6, 20 the price of Bitcoin has been low compared to the cost of BTC production. Macromicro.me said the portal used data collected from the University of Cambridge to “find out the cost of mining an average amount of bitcoin.”

“When the cost of mining is lower than the market value of bitcoin, more miners will join,” the website macromicro.me details. “When mining costs are higher than miners’ income, [the] The number of miners will decrease. “

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Bitcoin miners face squeeze as BTC production costs remain well above spot market value
Braiins.com statistics for November 21, 2022.

In addition to the metrics presented on macromicro.me, Glassnode’s hash price chart shows hash prices at all-time lows. Glassnode’s description states that the chart highlights “a metric that estimates miners’ revenue, relative to their estimated contribution to the network’s hash power.”

Analysis from braiins.com also shows that the current hashrate is lower than the current hash price. Similar to macromicro.me stats, braiins.com metrics show a change around October 6, 2022. If the price of Bitcoin does not rise or fall, many BTC mining operations will face crowding out the industry and they have not faced this situation yet.

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bitcoin, bitcoin (BTC), bitcoin mining, braiins.com, BTC, BTC mining, BTC production cost, data, glassnode, hash price, hashrate, Macromicro.me, metrics, bitcoin mining , BTC mining, mining data, mining indicators, production costs, statistics, statistics

What do you think about bitcoin’s spot market value falling below the crypto asset’s production costs? Let us know your thoughts on this topic in the comments section below.

Jamie Redman

Jamie Redman is the Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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