Iran Oil Shock May Hit Bitcoin Miners Through BTC Price

TLDR Analysts at Luxor Technology’s Hashrate Index said oil shocks linked to the Iran conflict affect miners more through BTC price volatility than energy costs. Brent crude rose above $100 per barrel after tanker disruptions in the Strait of Hormuz before easing near $90. Hashrate Index estimated that about 90% of global hashrate operates in power markets with limited correlation to crude oil prices. The report stated that crude oil use in bitcoin mining is “essentially a rounding error” within overall network energy consumption. Hashprice fell to $27.89 per PH/s/day in February after bitcoin declined 23.8% from $78,000 to $65,000. Bitcoin miners face greater exposure to BTC price swings than rising energy bills after oil market turmoil linked to the Iran conflict. Luxor Technology’s Hashrate Index reported that crude shocks transmit weakly into most mining power markets. The analysis showed that revenue volatility, not electricity costs, poses the main risk. Oil Market Shock Shows Limited Direct Impact on Mining Costs United States and Israeli strikes on Iranian targets disrupted tanker flows through the Strait of Hormuz. Roughly 20% of the global oil supply moves through that corridor each day. Brent crude jumped from about $60 to above $100 per barrel before easing near $90. Traders also used decentralized venues like Hyperliquid to trade oil derivatives outside regular hours. However, Hashrate Index said crude oil use in mining remains “essentially a rounding error.” Data from the Cambridge Centre for Alternative Finance and the Bitcoin Mining Council shows that over half the network uses non-fossil energy. Hashrate Index estimated that about 90% of global hashrate operates in electricity markets with little crude correlation. The United States, Russia, and China hold the largest hashrate shares. Paraguay, the United Arab Emirates, Oman, Canada, Ethiopia, and Kazakhstan follow. Most of these markets rely on natural gas, coal, hydro, or geothermal sources. Th...