With Bitcoin halving, now only two months away, the current price of Bitcoin threatens the break-even cost for miners. This presents a scenario for large scale exits from miners. Nevertheless, according to leading analyst, mining is a large scale business and ‘respectfully disagrees’ with any FUD around miner capitulation.
Bitcoin around $8000 is at the confluence of production cost for miners paying $0.06 per KWh. Moreover, post halving, effectively the production cost will double which will put a lot of pressure on miners causing capitulation.
Matteo Leibowitz, a research analyst at The Block notes,
If prices fail to double within the next 2 months, miners will find their revenues cut in half. Mining operations will close en masse, network security will dive & Bitcoin’s value proposition will objectively be worse off than it is today. Read More...