Bitcoin Price Drops Below Mining Cost

Bitcoin, the leading cryptocurrency, fell back to $16,800 with the sell-off after pushing the $18,300 level last week. The hawkish statements made by FED Chairman Powell after the rate hike affected all markets negatively. Bitcoin has dropped 11% since then, and the American stock index S&P500 has dropped 7%.

Bitcoin continues its horizontal course for about 40 days. BTC could slowly retest the $15,600 support if there are no new developments. On the other hand, the course of Bitcoin price left crypto miners in a difficult situation. According to new on-chain data, BTC miners are now working at a loss.

According to the Difficulty Regression Model graph shared by on-chain analytics firm Glassnode, miners are now making losses. According to the data, the production cost of one Bitcoin is $ 18,800, while the largest cryptocurrency finds buyers in the market with a tag of $ 16,800.

The decline in miner profits supports the data that Bitcoin is trading below its cost of production. According to Braiins.com, revenue for BTC miners has decreased by 72% year over year. The daily income of crypto miners is around $ 15 million.