Breaking News! BTC Plunges Below $50,000, Should Miners Keep Mining?

Global Stock Market Crash on August 5, 2024! Nikkei Plunges 12%, Multiple Circuit Breakers Triggered, European Stocks Open Sharply Lower, German and French Markets Drop Over 3%, Global Investor Confidence Shaken, and Cryptocurrencies Also Take a Hit.

As of this writing, BTC has plummeted by $10,000 in the past 24 hours, falling to $49,000. ETH has also dropped to around $2,100. The entire crypto market has seen a $2 trillion evaporation in market value.

This is clearly not good news for miners. Based on current prices, the vast majority of BTC ASIC miners are no longer breaking even. The only machines still maintaining profitability, given an electricity cost of 6 cents per kWh, are Bitmain’s S21XP Hyd, S21, S19XP Hyd, S19XP, T21, S19K PRO, and Avalon’s A1466I, A1466.

This global market crash is likely related to the sharp decline in U.S. stocks last Friday, triggered by a July jobs report that was far weaker than expected, sparking fears of a potential recession. Other contributing factors include the situation in the Middle East and Warren Buffett’s massive sell-off of Apple stock.

As of this writing, U.S. stock futures continue to plunge, with panic in the investment community escalating sharply. The overall trend remains downward. In comparison, perhaps we miners are under less pressure than other types of investors. After all, we miners have many choices. If you believe this is a good time to mine with low difficulty, you could accept some electricity losses but mine more BTC faster than others. If you don’t want to accept electricity losses, you can always shut down your machines. Either way, when prices rebound, miners will still be well-positioned to reap significant profits.

Senior analyst Dan Dolev’s view is that Bitcoin is still not the safe-haven asset people want it to be. If unemployment rises and people lose their jobs, investors will have to liquidate their tokens, meaning they will sell off BTC. However, in the long term, with the Federal Reserve starting to cut interest rates, the U.S. is about to begin a new round of monetary easing. As more U.S. dollars enter the capital markets, the crypto market is expected to rise as well. Therefore, a reasonable conclusion might be that the short term is unpredictable, but the long term looks bullish.

Finally, BITMARS would like to remind everyone that all investments carry risks, so decisions should be made cautiously.

BITMARS is an internationally renowned crypto miner trading company. We provide comprehensive, professional, timely, and cost-effective miner purchasing and hosting services to maximize your wealth!