Arcane Research noted that a decline in profitability will force companies to sell equipment purchased on debt, which will collapse prices even further

Prices of ASIC miners fell to lowest since January 2021

30.06.2022 - 13:05

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2 min

What’s new? ASIC miner prices have fallen to their lowest value since January 2021, reported Arcane Research analyst Jaran Mellerud. He believes that the downward trend in prices is likely to continue in the near future. The reason is the reduction of profits from cryptocurrency mining. In addition, large mining companies that have bought equipment on debt and are unable to repay it due to low profitability will be forced to sell rigs, which will collapse prices even further, the expert believes.

ASIC miner prices change. During the height of the bull market in early 2021, mining equipment prices peaked, based on a value of $120 per TH/s. However, Chinese authorities later obliged citizens to use locally manufactured equipment, which led to a drop in the value of ASIC miners. Prices then recovered and peaked again in November 2021, when the BTC rate rose to an all-time high (ATH), surpassing the $69 000 mark. However, since the price of the first cryptocurrency fell, ASIC miner prices have also fallen.

As of June 30, 12:50 UTC, BTC is trading at $19 253, down by 4,08% per day, according to Binance.

Earlier, Jaran Mellerud reported that cryptocurrency mining revenues in June fell 80% from their November 2021 peaks. According to him, in May, miners had to sell not only 100% of their bitcoins mined but also cryptocurrency from reserves. Normally, this figure is at 25-40% of the BTC mined.

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