The cryptocurrency market continues to show signs of a modest rebound, aligning with expectations outlined in recent analyses. Despite ongoing volatility, conditions for a prolonged and sharp correction remain absent. This current uptick, though subtle, fits within the broader anticipated market behavior—driven more by sentiment and news than structural shifts.
We are still in a highly sensitive, message-driven phase of the market cycle. The notable dip on the 10th, for instance, was largely triggered by the completion of halving events for Bitcoin Cash (BCH) and Bitcoin SV (BSV), coupled with disappointing outcomes from global oil production negotiations. Meanwhile, the global health landscape remains uncertain, adding another layer of unpredictability to financial markets.
That said, the overall trajectory remains structurally sound. A sustainable bull run won’t happen overnight. Short-term consolidation is not only expected but necessary. Investors should remain attentive to macro-level developments and breaking news, while maintaining confidence in the long-term upward trend of digital assets.
👉 Discover how market cycles impact investment strategies in volatile environments.
Oil Markets and Global Economic Leverage
Oil continues to play a pivotal role in global economic dynamics. In my assessment, an agreement on production cuts among OPEC members and allied nations is likely inevitable—but not without conditions. Key producers expect the United States to formally participate in output reductions. Without U.S. involvement, the burden falls disproportionately on OPEC+, allowing American shale companies to benefit unfairly from higher prices without contributing to supply discipline.
This situation underscores a deeper truth: America’s global economic influence rests heavily on two pillars—the U.S. dollar’s reserve currency status and dominance in energy markets—both backed by unmatched military strength. However, repeated rounds of aggressive monetary easing and near-zero interest rates are beginning to erode long-term confidence in the dollar.
Each round of quantitative easing dilutes purchasing power and increases systemic risk. Over time, this could contribute to a gradual weakening of the dollar’s global standing. While such a shift may take years, many of us may live to witness a historic turning point—a relative decline of dollar hegemony and a restructured global financial order.
Canaan Inc.: A Cautionary Tale of “Peak at IPO”
Amid the recent halving cycle discussions, it's worth examining the trajectory of Canaan Inc. (Canaan Creative), the first major cryptocurrency mining hardware manufacturer to go public. The company’s story has become a textbook case of what some describe as "listing equals peak."
Canaan’s stock reached a high of $13 per share shortly after its NASDAQ debut but has since plummeted to a low of $2.53—currently trading around $3.20 despite recent market rebounds. This dramatic fall reflects deeper structural challenges within the mining hardware industry.
In its first unaudited earnings report post-IPO, Canaan revealed it had sold 10.5 EH/s of computing power—accounting for approximately 20% of Bitcoin network hashrate growth over the previous year. Financially, the company reported fourth-quarter 2019 revenue of CNY 463 million (~USD 65 million), marking a 66.8% year-on-year increase.
For the full year 2019, total revenue stood at USD 204.3 million. However, net losses reached USD 148.6 million—an alarming deficit that raises questions about profitability models in the mining sector.
Why Mining Hardware Firms Struggle
Canaan’s financial struggles aren’t isolated—they reflect broader industry headwinds. Over the past three years, declining market conditions have steadily eroded profitability across mining hardware manufacturers.
Bitcoin’s protocol design inherently pressures margins: block rewards are fixed and halve every four years, while network hashrate consistently rises due to technological advancements and increased participation. From a BTC-denominated perspective, this means each terahash (TH/s) generates fewer bitcoins over time.
As revenue per unit decreases, manufacturers must lower prices to stay competitive—directly compressing profit margins. This dynamic is further intensified by rising competition.
Historically, Bitmain dominated the ASIC mining space, with Canaan holding a solid second place—especially strong in early-generation machines like the Avalon series. But in 2019, MicroBT (maker of “Whatsminer” devices) emerged as a disruptive force, leveraging aggressive pricing and high-efficiency models to capture significant market share.
MicroBT’s rise didn’t just challenge incumbents—it reshaped the entire industry landscape, triggering price wars and reducing average profitability across all players. Today, only companies with deep R&D capabilities and vertical integration can survive thin margins.
👉 Learn how technological shifts are redefining digital asset infrastructure investments.
Mining vs. Holding: Which Strategy Wins?
Given these realities, the case for individual investors engaging in mining—especially through purchasing hardware—has weakened considerably.
For most retail participants, mining is no longer a viable path to profit. High electricity costs, equipment depreciation, logistical hurdles, and unpredictable returns make it a complex and risky endeavor. Even large-scale operations now operate on razor-thin margins.
In contrast, simply accumulating and holding Bitcoin (“HODLing”) offers a simpler, more reliable strategy with historically superior returns. There’s no maintenance cost, no technical overhead, and no exposure to hardware obsolescence.
The same logic applies even more strongly to altcoin mining. With lower network security, smaller communities, and higher volatility, mining lesser-known cryptocurrencies rarely justifies the effort or expense—especially when compared to direct acquisition or long-term holding of established assets like Bitcoin.
Core Keywords
- Bitcoin mining
- Canaan Inc.
- Cryptocurrency holding strategy
- Mining hardware profitability
- Market cycle analysis
- Halving impact
- HODL vs mining
- Network hashrate growth
👉 Compare long-term holding versus active participation in digital asset ecosystems.
Frequently Asked Questions
Q: Is Bitcoin mining still profitable in 2025?
A: For individual miners using consumer-grade equipment, profitability is extremely limited. Industrial-scale operations with access to cheap energy and efficient hardware may still generate returns, but even they face margin pressures due to rising hashrate and halving events.
Q: Why did Canaan’s stock drop so significantly after IPO?
A: Several factors contributed: declining cryptocurrency prices post-listing, shrinking profit margins in the mining hardware sector, increased competition from MicroBT, and broader investor skepticism about sustainable business models in cyclical crypto industries.
Q: Should I buy mining hardware or just buy Bitcoin directly?
A: For most investors, buying Bitcoin directly is more efficient and less risky. Mining involves substantial upfront costs, ongoing expenses (like electricity), and technical complexity—with uncertain returns that often underperform simple holding strategies.
Q: What does “HODL” mean in crypto investing?
A: “HODL” is a slang term derived from a misspelling of “hold,” meaning to retain cryptocurrency despite market volatility. It represents a long-term investment philosophy focused on asset appreciation rather than short-term trading or mining income.
Q: How does Bitcoin halving affect miners?
A: Halving reduces block rewards by 50%, cutting miners’ primary source of income in BTC terms. While price appreciation can offset this over time, immediate post-halving periods often lead to reduced profitability and miner turnover—especially for inefficient operations.
Q: Can small investors compete with large mining farms?
A: Generally, no. Economies of scale give large farms significant advantages in power negotiation, hardware deployment, and operational efficiency. Small-scale miners typically face negative ROI unless they have access to near-zero-cost electricity or repurpose existing infrastructure.