BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Rising U.S. Inflation will Wreak Bitcoin Miners

by Dalmas Ngetich
Jul 12, 2022 - 12:00 am
in Blockchain
Rising U.S. Inflation will Wreak Bitcoin Miners

The US inflation rate has been on a steady increase for the past few months. Despite the Fed’s attempt to curb inflation, the prices of goods and services keep rising.

For Bitcoin miners in the US, this has been a major challenge. The cost of running and maintaining mining facilities and powering mining gadgets will likely take a toll on miners. Interestingly, the Bitcoin hash rate has been declining since June 13th.

32 days since the start of Bitcoin's miner capitulation.

If CPI comes in hot, US equities make new lows, and Bitcoin drops sharply below $20k, get ready for the next wave of capitulations. pic.twitter.com/pKfchsILmf

— Joe Burnett (🔑)³ (@IIICapital) July 11, 2022

Bitcoin broke the $30K support around that period and hasn’t recovered since then. With the falling price of Bitcoin and the rising costs of electricity and maintenance, miners have been discouraged. The slight loss of interest from Bitcoin miners has been reflected in Bitcoin’s hashrate.

At the moment, only miners in specific regions where energy is cheap will profit from mining Bitcoin. Notably, though, most miners hardly sell off Bitcoins immediately. Miners typically hold on to the asset until the market is favorable.

How the CPI May Affect Bitcoin Miners

The Consumer price index is used to measure inflation. It gives a clue about the number of money households are willing to spend. A higher CPI signals inflation while a low CPI signals deflation.

The United States Labor Department will be reporting the Consumer Price Index tomorrow. Financial analysts already forecast a CPI value that will surpass the 8.6% annual inflation rate that was recorded last month.

Already, the surge in energy prices last month indicates that more Bitcoin miners will temporarily abandon mining. Since many crypto miners are concentrated in the United States, a decrease in mining activities will likely further affect Bitcoin’s price.

A clampdown on Bitcoin mining in China has usually affected Bitcoin’s value in the past. Right now, the United States has taken China’s position as the leading nation with Bitcoin miners. With the current challenge US miners are facing, Bitcoin’s value may further plummet in the coming weeks.

Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Close-up of Tether's ToS document with highlighted changes related to Singaporean customers.

Tether Restricts USDT Redemption for Certain Singapore Groups: Impacts and Implications

September 25, 2023

Tether, the stablecoin giant, has shifted its ToS, barring certain Singapore entities from redeeming USDT. Cake DeFi's CEO...

Blockchain investigator ZachXBT reviewing a controversial Gotbit document.

Blockchain Investigator ZachXBT Exposes Gotbit’s Controversial Services

September 25, 2023

Blockchain investigator, ZachXBT, takes aim at Gotbit over a leaked report, unveiling potentially manipulative services in the crypto...

Graphic representation of Mixin Network with alert signs indicating system vulnerabilities.

Mixin Network Hack Drains $200M from Mainnet Assets

September 25, 2023

Decentralized peer-to-peer platform, Mixin Network, confirms an approximately $200 million crypto asset loss following a security compromise.

Illustration of Google Cloud's BigQuery connecting with multiple blockchain symbols.

Google Cloud’s BigQuery Encompasses 11 More Blockchains: An Inclusive Cryptocurrency Landscape

September 25, 2023

Google Cloud’s BigQuery now integrates with 11 blockchains, enhancing the scope of crypto analytics and offering a deeper...

Press Releases

David Ferrucci next to the Elemental Cognition brand emblem.

BM Watson’s Lead Developer Secures $60M for New AI Venture, Elemental Cognition

August 18, 2023

David Ferrucci, has raised a remarkable $60M for his AI startup. The company brings forward two pioneering chatbot solutions designed...

pulse5

Amsterdam Gets with the Dutch Blockchain Days the Biggest Event of the Benelux in the Field of Blockchain, Crypto Currencies, NFTs and Other Web3 Developments

May 8, 2023

Discover the future of blockchain, crypto, NFTs, and Web3 at Dutch Blockchain Days, the largest event in Benelux.

pulse4

Korea Blockchain Week 2023 Set to Push the Boundaries after Record-Breaking 2022 Event

May 8, 2023

Korea Blockchain Week 2023 returns after a highly successful 2022 event, featuring leading experts and the latest trends in blockchain...

pulse3

Istanbul Will Be Hosting Eurasia’s Largest Blockchain Event Once again on May 8–11, 2023

May 8, 2023

Join Eurasia's largest blockchain event, the Blockchain Economy Istanbul Summit, May 8-11, 2023, and discover the future of financial technology.

View All
BTC-Pulse LogoTransparent

© 2023 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2023 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise