Mining is a critical part of the Bitcoin ecosystem. The financial health of this branch of the industry gives a lot of insight into the Bitcoin price and health of the sector in general. At the moment, the miners are having a hard time with the bear market.
No end in sight yet
The profitability of miners can be calculated by taking the turnover per kilowatt hour. According to Jaran Mellerud, a Bitcoin analyst for Hashrate Index, a mining bear market occurs when kilowatt-hour revenue falls below $0.25. He calculates for this with the most efficient Bitcoin miner on the market.
The bear market of 2018 lasted almost a year, with revenue per kilowatt-hour ultimately dropping to $0.12. After that downward trend came a small bull market, until the bear market started again in 2019. According to Mellerud, we hit the all-time low of $0.083 per kilowatt-hour during the 2019 bear market. At that time, the Bitcoin price fell to $5,000.