The recent months have been a case study of bitcoin mining’s cyclicality

The bitcoin mining industry is notoriously cyclical, going from super profitable to barely cash flow break-even in just a few months. What exactly causes this cyclicality?
Source: CoinMetrics (July 3)

The bitcoin mining industry's daily revenue has plummeted to $18 million from a peak of $62 million in November 2021. 2021 was an excellent year for the bitcoin mining industry, with average daily revenue of $46 million, corresponding to a total industry revenue of $16.7 billion. In comparison, in 2020, the combined income of the mining industry was $5 billion.

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