Bitcoin Mining Stock Trading Volume Tanks to Record Low

Updated by Kyle Baird
In Brief
  • Mining stock’s share of BTC volume has tanked to 2%.
  • Hash rate and difficulty remain near peak levels.
  • Bitcoin hashprice index is at an all-time low.
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Bitcoin prices are not the only thing depressed at the moment. BTC mining stock volumes are also in the doldrums as the crypto winter deepens.

Bitcoin mining stock aggregate trading volumes relative to the asset itself have slumped to a record low. The metric has trended down since the Bitcoin all-time high in November last year.  

The Bitcoin mining stock’s share of BTC volume has tanked to 2% from 44% at its peak.

The metric was observed by mining expert Jaran Mellerud who added that the meager trading volumes “indicate that the market is exhausted and running out of sellers.”

He added that investors have forgotten that they can also buy mining stocks to get exposure to BTC.

Bitcoin Mining Metrics in The Doldrums

On the bright side, the depressed mining stock markets have led to low valuations. This could be advantageous to investors who wanted to get into this market early, Mellerud added.

“The low volumes of Bitcoin mining stocks mean that it only requires a slight increase in demand for these stocks to see massive price increases.”

Nevertheless, Bitcoin miners are facing a raft of issues at the moment. Bitcoin hash rate, which is a measure of network computer horsepower, is near peak levels. According to Blockchain.com, the hash rate is currently 262 EH/s (exahashes per second). Furthermore, this is down marginally from its Nov. 2 peak of 273 EH/s.

The difficulty, which measures competition among miners, is also at peak levels. This makes it much harder to mine the next block.

The Bitcoin hashprice index is at an all-time low. Hashprice, or profitability, is a measure of market value assigned per unit of hashing power in dollars per terahash per second per day ($/TH/s/d). The current hashprice is a meager $0.059 per TH/s/d, down 82% from the same time last year.

Bitcoin hashprice index 1 year – hashrateindex.com

High energy prices are also compounding problems in the Bitcoin mining industry. Looking at these gloomy metrics, it is no surprise that the appetite for Bitcoin mining stocks has dwindled.

BTC Price Outlook

It doesn’t appear that things will improve on the Bitcoin mining front any time soon. Price recovery is needed for miners to become profitable, and that isn’t likely to happen in the short term.

Bitcoin prices have inched up 1.5% on the day. As a result, the asset was trading at $16,823 at the time of writing. However, the FTX collapse has catalyzed a loss of almost 17% over the past fortnight as crypto markets remain weak.

Bitcoin is currently down 75.6% from its all-time high, and miners may have longer to wait for recovery.

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