Cryptocurrency mining costs and market prices are closely linked. When prices fall below mining costs, less efficient miners shut down operations, reducing network hash rate and mining difficulty. This adjustment can lower overall mining costs, allowing more efficient miners to remain profitable. During price declines, the mining industry often consolidates, with larger, well-capitalized firms surviving while smaller operators exit. This dynamic can lead to increased centralization in mining power. Additionally, miners may sell holdings to cover costs, exerting further downward pressure on prices, creating a feedback loop that impacts both mining profitability and market stability.