Bank of England Chief Economist Huw Pill has warned that energy and commodity price volatility driven by the Iran conflict could persist well into 2027, with UK CPI potentially exceeding 6% by early 2027 if oil prices remain above $100 per barrel through 2028, roughly triple the BoE’s 2% target. This poses a significant threat to Bitcoin miners, whose electricity costs represent more than 90% of operational expenses. Sustained energy price volatility creates planning challenges for mining operations that make capital allocation decisions on multi-year horizons. Higher-for-longer interest rates could weigh on crypto valuations alongside traditional risk assets. The mining sector may see accelerated consolidation, with smaller operators on thin margins most vulnerable to global energy price swings.
Source: Read the original article
