The crypto winter of 2022 has surpassed the damage done to the crypto miners as compared to the previous volatile trends. The current bearish trend has had a devastating impact on so many public mining companies.
As the result, many publicly listed mining companies are finding it extremely hard to fulfill their debt-related responsibilities.
Market analysts on the other side do believe that the current bearish trend following the demise of FTX will continue to reshape the outcome of mining companies until the mid of the year 2023.
The last week was one of the worst weeks of the current crypto winter as all the big cryptocurrencies have experienced a rapid decline in their prices.
However, Bitcoin the leading cryptocurrency is retaining the resistance level above $17k and was priced at $17,126 on Friday, 9th December 2022.
Bitcoin mining is the backbone of the Bitcoin ecosystem. Moreover, the speed at which mining is being carried out and the number of return miners are getting also play a vital role in price stability and price rise of Bitcoin.
However, for the past several weeks the indicators have been clear that miners are struggling to maintain sustainability in their mining operations due to the intense bears that are manipulating market dynamics.
Apart from that, miners across the globe are struggling with cash flows as well. The most recent outcome stunned the experts when the world’s biggest crypto-mining name Blockstream raised the funds by offering a staggering discount of 70%.
Current mining and the cryptocurrency markets both are struggling to get out of the way to avoid bears. But bears are constantly bringing the markets and investors to their knees.
Most recently, the top ten cryptocurrencies also plunged as their prices declined this has had a negative impact on the overall crypto-related operations as the global market capitalization of the cryptocurrency market diminished by 1.50%.
Analysts Do Believe That Bears Might Be In For a Longtime
The previous analysis, current market dynamics, and the institutional investor’s concerns, all point out at similar direction that bears might be moving on for longer than expected.
As the bears are expected to be a dominant force in the market for the time to come, the revenue earned by the Bitcoin miners can be compromised greatly.
After the fall of FTX till now the market has not heard a single piece of good news or has seen signs of recovery from Bitcoin.
How much a miner is earning on the successful mine of one Bitcoin can be determined in terms of a kilowatt hour (kWh).
Renowned crypto experts and market analyst Jaran Mellerud, most recently claimed that the current rate miners are getting is under $0.25 per kWh. His assumptions are based on the working mechanism of various mining machines installed by different companies.
Mellerud also compared the current market bears with the market bears of 2018 and 2019.
According to Mellerud, the lowest hash rate being offered to miners was back in 2019, when the mining rate reached below $0.12, while the price of Bitcoin at that moment time reached below the $5,000 mark.
He also added that the current bearish trend in the mining market only intensified following the demise of the FTX, however, it was present in the market since April 2022.12.
As of today, the bears have lasted for almost 225 days, with the minimum revenue at $0.108. But this time the energy prices were so high, which makes the current bears the most damaging of all time.
This is also the longest run of bulls ever in the Bitcoin mining industry. The Bitcoin mining industry is directly linked with Bitcoin’s price in the market.
As soon as the prices will go higher and become more stable bitcoin mining will get rid of bears that are currently controlling the miners’ revenue as of now.