Bitcoin mining equities have taken a significant hit, paralleling the downturn in broader stock markets, as competition soars to unprecedented levels and fear-driven selling grips traders’ actions amid uncertainty from tariffs.
On Monday, many mining stocks plummeted by over 10%, contributing to the declines observed in the previous week. MARA Holdings (MARA) saw nearly an 11% drop, Riot Platforms (RIOT) plummeted about 8%, and CleanSpark (CLSK) experienced a 10% decrease during early trading in the U.S. Other stocks tied to cryptocurrency, including Michael Saylor’s Strategy (MSTR) and crypto exchange Coinbase (COIN), also fell by more than 10%.
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The current sell-off is part of a larger trend, as traders globally engage in panic selling across numerous asset classes, with equities being particularly hard hit. The tariffs imposed by U.S. President Donald Trump have injected further uncertainty into the markets, exacerbating concerns for miners amidst a brewing trade conflict with China.
At present, Chinese manufacturers dominate the market for the machinery utilized by most miners to earn their block rewards. Should the tariffs persist, they are likely to escalate mining costs for those already grappling with rising energy prices and shrinking profit margins due to the recent halving, which halved their rewards.
Compounding the difficulties, the Bitcoin network’s computing power — indicative of competition levels among miners — reached a staggering all-time high of 1 zettahash per second (1 ZH/s) last Friday, according to Glassnode data. This milestone eclipsed the previous high of 975 exahashes per second (EH/s), set on January 31.
With competition intensifying, the price of Bitcoin has fallen sharply from a recent high exceeding $109,000 to around $77,000, putting additional strain on mining revenues. Hashprice, a metric reflecting daily income in relation to hash power, has plummeted to an unprecedented low of $42.40, further tightening pressure on miners.
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