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.
Make us preferred on Google
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
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Stablecoins moved $35 trillion last year but only 1% of it was for 'real world' payments
While stablecoins settled around $35 trillion last year, only around 1% of that represented genuine payments like remittances and payroll, a new report found.
What to know:
- Stablecoins processed more than $35 trillion in transactions last year, but only about 1% of that reflected real-world payments, a report by McKinsey and Artemis Analytics found.
- The study estimated that roughly $390 billion in genuine stablecoin payments, such as vendor payments, payrolls, remittances and capital markets settlements.
- Despite rapid growth and increasing interest from traditional payment firms like Visa and Stripe, true stablecoin payments still account for just a tiny fraction of the more than $2 quadrillion global payments market, the report said.
Top Stories
