How Does a Sudden Drop in a Coin’s Price Affect the Breakeven Point for a Miner?

A sudden drop in a coin's price significantly raises the breakeven point for a miner, assuming all other costs remain constant. The breakeven point is the price at which the revenue from mining (block rewards plus fees) exactly equals the total operational costs, primarily electricity and hardware depreciation.

When the coin price drops, the fiat value of the block reward decreases, meaning the miner needs to receive a larger number of coins or reduce their operational costs to remain profitable. If the price falls below the breakeven point, the miner is operating at a loss.