Cryptocurrencies witnessed a major drop in value during November 2018 and this has taken a toll on small-time investors and major institutional investors alike. The total hash rate of Bitcoin has dropped as much as 31 percent since November. This has been termed as an unprecedented event in the history of cryptocurrencies affecting, according to a BitMex report, around 1.3 million Bitmain S9 miners.
The price drop has left a significant mark, especially on the mining community sending “almost all the miners into the red” according to a BitMex report as the sudden price drop has left many of their operations unprofitable. The BitMex report also revealed the fact that the S9 miners are struggling to keep themselves floating in the market. Bitcoin has also taken the hit as its price has also dropped by approximately 45 percent.
The Bitcoin mining revenue is falling rapidly from around $13 million per day at the start of November to around $6 million per day at the beginning of December 2018. The report released by BitMex stated that the fall was because the miners left their networks unattended at large. Many blamed the government citing the government’s increased regulation as the main cause behind the cause and others blamed the Bitcoin sell-off which devalued most cryptocurrencies on the market.
BitMex diagnosed the Bitcoin sell-off as the primary problem and the main reason behind the glorious fall. Boltzmann, a cryptocurrency intelligence monitoring platform informed BitMex that their programme had detected unusual activities on November 12 in which multiple miners sold a large amount of Bitcoin during this time.
However, the analysis given to BitMex by Boltzmann does not consider the sell-off the sole reason even though they observed that the Bitcoin net sales from miners were “17.5 standard deviations below [the] 3-month trailing average” and they mentioned that the prices would continue to fall regardless of the news or investment flows.