The current drop in the rate $BTC goes beyond a normal technical correction. The market has closely approached the price levels that directly affect the economic model of digital asset extraction, changing the overall risk profile for investors.
Around the mark of $70,000, the initiative shifts from speculative traders to fundamental network participants — miners. That is why this level currently carries more weight than any moving averages or trend lines.
Critical profitability threshold
With the current difficulty of calculations and an average electricity cost of about $0.08 per kWh, a clear zone of financial pressure is formed. New data shows that for most devices in the Antminer S21 series, which constitute a significant portion of the global hash rate, the breakeven point is in the range of $69,000 to $74,000.
Simply put, if the price drops below this corridor, the operational activities of many companies will stop generating profit.
Bitcoin regularly demonstrates volatility, changing in price by thousands of dollars. However, the current moment is distinguished by who is experiencing stress. If above $70,000 mining remains profitable for a wide range of participants, below this threshold profitability becomes selective.
As a result, only the most efficient players survive. Mid-tier operators, on the contrary, face cash flow gaps and pressure on balance sheets.
Lack of guarantees for price support
It is important to make the necessary clarification. The so-called 'shutdown price' is not a guaranteed support level. Miners do not control market quotes, so the asset may trade below the breakeven point for an extended period.
Nevertheless, it is in these zones that the behavioral model of industry participants changes. This, in turn, determines the dynamics of trading during periods of market tension.
Scenarios of development of events
If the bitcoin price briefly drops below $70,000 and quickly recovers, the consequences will be limited. The situation will change if the price consolidates below this level. In that case, secondary pressure factors will come into play.
Firstly, financially unstable miners will start selling their BTC reserves to cover electricity and hosting costs. Secondly, some equipment will be physically disconnected from the network, leading to a local decrease in hash rate.
Moreover, the negative news background is transforming. Headlines about 'volatility' will be replaced by reports of a 'mining crisis,' which will further amplify investor pessimism.
The aggregate of negative factors
These factors are not fatal on their own. However, miners' problems become dangerous when they overlap with liquidity shortages. At the moment, the market is already facing a number of challenges:
Tight conditions of global liquidity.
Reduction in appetite for risk assets.
Capital outflows from spot ETFs and liquidations of derivatives.
If forced selling of coins by miners is added to this list, the drop in quotes may accelerate, outpacing fundamental indicators. This is how sharp and uncontrolled market movements occur — not due to the weakness of the asset itself, but due to the simultaneous realization of several risks.
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