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<p>The post <a href="https://coinpedia.org/news/bitcoin-mining-profitability-rose-but-bitcoin-price-dropping/">Bitcoin Price Drop and Mining Trends: What You Need to Know</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>As Bitcoin’s price tumbled below <a href="https://markets.coinpedia.org/bitcoin/">$57,000</a>—a decline of over 8.70% in just one week—bearish sentiment has intensified. However, U.S.-listed mining companies have bucked the trend by ramping up their Bitcoin production despite a notable drop in the network’s hashrate. </p> 
<p>What’s behind this counterintuitive move? Is it a hidden profit opportunity, or a risky gamble? Dive deeper to find out!</p> 
<h2 class="wp-block-heading" id="h-a-curious-trend-rising-mining-profitability-amid-falling-prices">A Curious Trend: Rising Mining Profitability Amid Falling Prices</h2> 
<p>In June, while Bitcoin’s price saw a modest increase of 3%, the network’s mining power fell by 5%. This unusual scenario paradoxically made Bitcoin mining more profitable compared to May. </p> 
<p>According to a recent report by investment bank Jefferies, this trend is seen as a recovery from the effects of the April halving, which initially slowed Bitcoin’s supply growth but has now contributed to improved mining profitability.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/26cf.png" alt="⛏" class="wp-smiley" style="height: 1em; max-height: 1em;">With <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> trading below $58k, what is the current profitability for mining?<br><br>At a rate of $0.08/kWh, ASICs less efficient than 23 W/T operate at a loss.<br><br>For more details on mainstream miners, please refer to the table below. <a href="https://t.co/hJS1lsVnmK">pic.twitter.com/hJS1lsVnmK</a></p>— f2pool 
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f41f.png" alt="🐟" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@f2pool_official) <a href="https://twitter.com/f2pool_official/status/1808821272014713257?ref_src=twsrc%5Etfw">July 4, 2024</a>
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  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
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<h2 class="wp-block-heading" id="h-the-halving-effect">The Halving Effect</h2> 
<p>Analyst Jonathan Petersen explains that the halving, which cut miners’ rewards by 50%, initially slowed Bitcoin’s supply growth. However, this reduction in rewards has ultimately led to increased mining profitability as the network adjusts. </p> 
<p>In June, U.S.-listed mining firms increased their share of new bitcoins mined to 20.8% of the total network output, up from 19.1% in May. This boost in output coincided with these companies enhancing their mining capacities even as the overall network hashrate declined.</p> 
<h2 class="wp-block-heading" id="h-mining-giants-in-the-spotlight">Mining Giants in the Spotlight</h2> 
<p><a href="https://coinpedia.org/crypto-live-news/marathon-digitals-bitcoin-mining-yields-176m-profit-surge-in-q1-2024/">Marathon Digital</a> emerged as the leading miner in June, producing 590 bitcoins—slightly fewer than in May. Meanwhile, CleanSpark experienced a 7% increase, mining 445 bitcoins. Despite these advancements, Jefferies revised its price targets downward for several mining companies due to prevailing market conditions. Marathon Digital’s target was adjusted from $24 to $22, with similar reductions applied to Argo Blockchain ADRs and U.K.-traded shares. </p> 
<p>The bank maintained its hold rating, noting these companies’ strategic shift towards high-performance computing (HPC) and artificial intelligence (AI) hosting as a means to diversify revenue streams amid declining Bitcoin mining profitability.</p> 
<h2 class="wp-block-heading" id="h-the-impact-of-market-corrections">The Impact of Market Corrections </h2> 
<p>Despite the increased Bitcoin production by mining companies in June, the cryptocurrency’s price has fallen. This drop is largely attributed to selling and profit-taking by large investors (whales) and mid-sized miners. Although there have been sales from entities like Mt. Gox and the German government, their impact on the Bitcoin market has been relatively minimal.</p> 
<p>Several on-chain metrics suggest that Bitcoin was oversold when its price dropped to approximately $53,000. This oversold condition may have triggered a sharp rebound, as traders’ unrealized profits reached lows not seen since the FTX collapse, indicating that a market correction may be imminent.</p> 
<p>Also Read: <a href="https://coinpedia.org/price-analysis/bitcoin-ethereum-and-xrp-price-prediction-has-the-bull-rally-resumed/" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, And XRP Price Prediction: Has The Bull Rally Resumed?</a></p> 
<p><strong>With on-chain metrics suggesting a potential rebound, will you be ready to catch the next Bitcoin wave?</strong></p>

Bitcoin Price Drop and Mining Trends: What You Need to Know

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