The Price of Bitcoin Mining Machines Plummets What Did the Cryptocurrency Communitys Legendary Whale Who Made a Billion at 23 Anticipate

Coin Realm reports:
This April, Bitcoin welcomed its fourth halving event in history. Due to the reduction in block rewards and the absence of a significant price increase, miners are facing immense operational pressure.
This morning, Bitcoin was affected by the news of Mt. Gox transferring 47,229 bitcoins from its cold wallet, and around 11 AM, it briefly fell below $55,000, marking a new four-month low.
f2pool: More and more ASIC miners are becoming unprofitable
Against this backdrop, one of the world’s largest Bitcoin mining pools, f2pool, later yesterday posted on social platform X, pointing out that as the BTC price falls, more and more ASIC miners will face losses:
With the Bitcoin price falling below $58,000, the current profitability of mining has been affected. Calculating with an electricity cost of $0.08 per kilowatt-hour, ASIC miners with an efficiency lower than 23 watts per terahash (W/T) will face losses.
Discus Fish: The opportunity is coming again
However, regarding the current situation, Discus Fish, the founder of f2pool and crypto asset custody company Cobo, does not seem pessimistic. On the contrary, he also posted saying “the opportunity is coming again.”
The machines have shut down… the opportunity is coming again
Regarding the “opportunity” mentioned by Discus Fish, community members added that machine shutdowns usually imply a certain turning point in the market.
In the cryptocurrency market, significant price fluctuations are common, especially in the current market environment, where machine shutdowns often signify a turning point in the market. Here is a detailed analysis of this phenomenon and the opportunities it may bring:
1. Background of Market Fluctuations and Machine Shutdowns
The cryptocurrency market is highly volatile, with frequent drastic price changes. When the price falls to a certain level, making mining economically unfeasible, machine shutdowns occur frequently. For example, when the Bitcoin price falls below a certain level, the mining costs of miners, including electricity expenses and equipment depreciation, may exceed mining income, leading miners to choose to stop operating their machines.
The main reasons for machine shutdowns include:
Price Plunge: When the price of cryptocurrencies falls to a certain level, miners’ mining income may not be sufficient to cover operating costs, such as electricity and labor expenses.
Rising Electricity Costs: The increase in electricity costs may also lead to machine shutdowns, as high electricity bills directly affect the economics of mining.
Aging Equipment and Increased Maintenance Costs: As mining equipment ages, maintenance and upgrade costs also increase, which may become one of the factors for miners to shut down.
2. Signals of Market Adjustment
Although machine shutdowns usually indicate a weak market, they may also signal potential investment opportunities:
Market Bottoming: Machine shutdowns may indicate that the market is approaching a bottoming stage. For investors, this could be an opportunity to buy at lower prices, as the market may have reached its bottom.
Opportunity for Technical Adjustment: With the fall in prices, more miners leave the market, making network difficulty adjustments more favorable for the remaining miners or new entrants.
Long-term Investment Opportunities: From a long-term investment perspective, market downturns provide good buying opportunities. Investors can accumulate assets during low-price periods, waiting for the market to warm up and rise.
Despite the potential market opportunities brought by machine shutdowns, investors still need to manage risks to avoid capital loss:
Price Volatility Risk: The cryptocurrency market is highly volatile, and investors need to be prepared for possible further declines.
Diversification of Investment Portfolio: Investors should consider diversifying their investment portfolio to reduce risk by not concentrating all funds on a single asset.
Utilization of Technical Analysis: Use technical analysis tools to assess market trends and potential rebound signals. Understanding technical indicators and market trends helps make wiser investment decisions.
Impact of Market Psychology: Investors’ psychological state has a significant impact on market fluctuations. It is crucial to remain calm and rational during market panic.
Strategy Adjustment: During market downturns, investors should adjust their investment strategies, focusing on long-term investment opportunities rather than just short-term market fluctuations.