Why is Bitcoin hovering around $4,000 in the past week when “mining breakeven” is supposedly much higher? We consider that Bitcoin pricing is driven strategically by the largest miners, analogously to OPEC’s influence on the oil markets, in an oligopoly structure. The recent price decline possibly reflects choices by China’s largest mining pools to leverage their relatively low costs of production - cheaply priced wholesale energy, and mining hardware at cost - to accomplish broader strategic goals.
Today the price of Bitcoin (BTC) dipped to Nearly $3,600, representing its lowest price in fourteen months since