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

Core Insights - Bitcoin is currently trading at $78,489, which has led to concerns about miner profitability as it approaches critical shutdown prices for many rigs [1][7] - A further decline in Bitcoin's price below $69,000–$74,000 could trigger a wave of miner shutdowns, particularly affecting mid-tier rigs [1][6] - The profitability of Bitcoin mining is heavily influenced by the balance between revenue from block rewards and transaction fees versus operational costs, primarily electricity [3] Mining Profitability - The "shutdown price" is defined as the Bitcoin price at which daily operating costs equal daily revenue, making it more viable for miners to turn off machines rather than incur losses [3] - For many older and mid-tier rigs, such as the Antminer S19 XP+ and Whatsminer M60S, current profitability is precarious, with some operating at a loss at the current Bitcoin price [4][7] - Newer, more efficient rigs like the Antminer U3S23H and S23 Hyd can remain profitable even if Bitcoin prices drop below $44,000 due to their superior energy efficiency [6][8] Impact of Miner Shutdowns - If unprofitable miners shut down, the overall Bitcoin network hashrate will decline, leading to an automatic downward adjustment in mining difficulty [9] - The next difficulty adjustment is expected around February 8, which could reduce difficulty by 14–18%, making mining easier and more profitable for remaining operators [9]