Bitcoin

<figure> 
 <figcaption>
 Cover image via <a href="https://u.today/">U.Today</a>
 </figcaption> 
</figure>
<a href="https://www.okx.com/ru/help/okx-to-discontinue-mining-pool-and-related-services">OKX</a> has announced a complete shutdown of its <a href="https://u.today/1-million-bitcoin-samson-mow-slams-fake-satoshi-craig-wright-in-court-setback">Bitcoin</a> mining pool products and related services, effective Feb. 26, 2024. This decision comes amid a tumultuous time for Bitcoin miners, as profitability wanes due to a dramatic decline in Bitcoin's price, recently dipping below the $40,000 mark.
The cryptocurrency exchange detailed its plans for winding down these services in a notice to its users, citing "business adjustments" as the primary driver for this decision. Starting from Jan. 26, 2024, the registration of new users for mining services was halted, while existing users have been allowed to operate until Feb. 25.
This strategic pivot away from mining operations by OKX could be indicative of broader issues facing the Bitcoin mining industry. The profitability of Bitcoin mining has plummeted, making it increasingly challenging for miners to sustain operations, especially those with higher overhead costs.
The decline in Bitcoin's value has exacerbated this issue, as the reward for mining no longer justifies the expense in many cases. The interruption of mining activities by major players like <a href="https://u.today/okb-profitable-addresses-top-97-despite-market-slump">OKX</a> can lead to a decrease in the network's difficulty, as the algorithm adjusts to the reduced hashing power. This adjustment could, in turn, make mining slightly more accessible for smaller miners, albeit temporarily.
OKX's transition away from mining pools follows a recent incident where the platform's native exchange token experienced a drop of more than 50% in value within a three-minute window. This drop was the result of a series of liquidations triggered by abnormal price fluctuations.
Following the debacle, OKB managed a significant recovery, bouncing back to $45.64 from a low of $25.17, with a staggering 2,100% increase in 24-hour trading volume, climbing to $79 million.

OKX Shuts Down Bitcoin Mining Operations: Here's Potential Reason

U_Today

Other articles published on Jan 26, 2024

Solana Foundation and CoinCDX Ignite Web3 Innovation in India with $3 Million Initiative

Why Cardano Could Be The Next Big Crypto Winner: An Influencer’s Perspective

FlexBot Revolutionizes Crypto Trading with Innovative Multichain Perpetual Trading Bot

Bitcoin Price Prediction: As Santiment Says Redditors Were Quickest To Buy The BTC Dip, Experts U...

Bitcoin Faces Sell-Off Pressure as Wallet Numbers Decline

Is the Correction in Bitcoin Over? Can I Buy Altcoins Now? Famous Analyst Talked About Altcoin Ra...

Join our free newsletter for daily crypto updates!