Share this article
Bitcoin’s Slump Is Good for Crypto Miners in Long Term, Jefferies Analyst Says
A lower bitcoin price will deter new entrants and help incumbents gain market share.
By Aoyon Ashraf
Updated May 11, 2023, 5:50 p.m. Published Jan 10, 2022, 4:06 p.m.
Bitcoin’s slump from November’s all-time high is hurting the shares of the crypto mining companies, but might nevertheless be positive for them because it will deter new entrants, investment bank Jefferies wrote.
- When bitcoin’s price continues to drop, smaller miners with higher electricity costs often reduce their operations, which will probably help publicly listed North American miners pick up “meaningful” market share, analyst Jonathan Petersen said in a note.
- “A slower growth trajectory for BTC price should encourage fewer new entrants to the network than if BTC’s price were to rise rapidly (i.e. 3Q21), allowing existing mining operators to grow their market share more quickly as they deploy additional ASICs,” Petersen wrote, referring to high performance mining computers.
- Bitcoin’s price has fallen about 39% since reaching its all-time high in November, while the network’s hashrate has continued its increase, reaching a record above 200 exahash per second (EH/s) on Jan. 1.
- On Monday, bitcoin fell below $40,000 for the first time since September 2021. Goldman Sachs said it expects the Fed to raise borrowing costs at least four times by the end of the year compared with a previous forecast of three rate hikes.
- Crypto mining stocks such as Marathon Digital, Riot Blockchain, Hive Blockchain and Hut 8 have all declined more than 4% on Monday.
Read more: Crypto Miners Are Better Investments Than Bitcoin Even After Sell-Off: Analysts
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Sky's Keel Starts $500M Investment Campaign to Boost RWAs on Solana
The Tokenization Regatta aims to allocate funds and support to projects bringing tokenized real-world assets to the Solana network.
What to know:
- Keel has launched a $500 million campaign to attract real-world assets (RWAs) to the Solana network.
- The initiative, called the Tokenization Regatta, offers capital allocation and support to selected projects issuing tokenized assets on Solana.
- More than 40 institutions have shown interest, Keel contributor Cian Breathnach said.
Top Stories
