On the Bitcoin network (BTC), after a low point on July 3 due to the Chinese “problem” (the banning of miners), the hahsrate has started again. And if since this reboot, post-migration from China, miners have tended to accumulate BTC, it seems that the situation is reversed since the recent rise in the price of the king of cryptos.
BTC resale proportional to production
Since China shot itself in the foot by banning bitcoin mining on its soil, miners in the rest of the world have benefited from a providential decrease in the difficulty of mining, which has allowed them to extract more precious BTC, without changing their devices or their power consumption costs in any way.
The metrics aggregator site Glassnode has just published an analysis of miners’ behavior towards their freshly mined bitcoin stocks (with more ease).
In a first observation, it would indeed seem that the income of miners per exahash (EH) of computing power has never been as important today as it has been for over a year. According to Glassnode, thanks to the Chinese ban and the latest rise in the BTC price, miners’ income would have returned to $380,000 per exahash per day, a level not seen since July 2019.
A simple, well-deserved profit grab?
We just saw it: so BTC miners outside of China are clearly celebrating right now. This seems to encourage some of them to already cash in their profits.
Indeed, in addition to their profitability being on the up, miners are seeing a bitcoin price that has already rebounded strongly from the low point of July 20, when BTC very briefly fell below $30,000.
This profit-taking can be seen in Glassnode’s metrics, which point out that 2,900 BTC were sold by miners in the past week – that’s nearly $150,000 million at the current price.
Thus, we see from the net flow of miners’ BTC inventory below that their bitcoin sales are equalizing with their production. After a strong selling phase corresponding to the panic period of the “Great Migration” caused by the Chinese regime in May/early July 2021, miners took advantage of the lower difficulty to accumulate bitcoins. This latest accumulation phase seems to be ending now, to become a neutral trend due to the aforementioned profit taking.
Miners may also be concerned that as the price of BTC gets closer and closer to its all-time high from last April, it may not be able to break through this resistance? Algorithmic models would tend to prove that Bitcoin is still undervalued at the current price, but miners seem to prefer to adopt the old adage of “a bird in the hand is worth two in the bush”.
