Don’t worry about miners selling bitcoin as profits are increasing, according to Glassnode
New data suggests that Bitcoin miners are “unlikely” to put pressure on BTC prices by selling coins in the coming weeks.
in the report During the last weekly on-chain week, Glassnode tried to allay fears of a massive miners sell-off.
The reduced level of difficulty is a gift for the remaining miners
In the context of leaving mining equipment out of China (which involves a large amount of hashrate), many people are concerned about miners selling BTC to cover costs and liquidation.
With the largest migration of bitcoin mining equipment and the drop in hashrate in history, miners are more likely to create selling pressure by disposing of coins that are believed to have been dormant for a long time.
Selling pressure and falling hashrate, in turn, have a negative impact on Bitcoin price movement, reduce potential profits or even fail to maintain an important level of support.
Wallet balance of all Bitcoin miners | Source: Glassnode
However, according to Glassnode, the situation appears to be under control. Miners are out and about and active miners receive a huge “surprise gift”.
As Bitcoin Magazine reported, this is because the difficulty of mining Bitcoin will decrease by nearly 25% by the end of this week – the biggest drop ever. As such, bitcoin mining will be more profitable for active miners.
As a result, there is less incentive to sell, as the network participants stagger in a profit spiral until the lost hashrate returns and the level of difficulty increases.
“The Bitcoin mining puzzle is now 23.6% more difficult, despite a 154% increase in sales over an average of 7 days.”
“The proportion of offline hash power is currently enormous and is currently being migrated. At the same time, the next difficulty adjustment is estimated at -25%. As a result, miners who stay active are likely to make more profits in the coming weeks unless the price continues to correct or hash power comes back online. “
Glassnode added that miners are more likely to liquidate coins accumulated over time when hash power returns.
“This largely suggests that active miners are not motivated to sell massively … and therefore Chinese miners liquidating coins are likely the main source of sales right now,” the report concludes.
How much profit?
Meanwhile, another source highlighted the profitability of mining in the current circumstances.
Based on data that put Bitcoin’s energy consumption at around 2,520 gigawatt hours per 14 days, adjusted for the degree of difficulty, writes the author Hass McCook emphasize 75% chance of winning for miners with investment costs and activity.
If the maximum cost to mine 1 BTC is $ 20,000, the difference between that cost and the spot price at press time is $ 34,500.
“So if the worst-case cost to mine 1 BTC is around $ 20,000 (probably nearly $ 13-14,000 today for professional miners), how hard do you have to work to get it? + 75% of the time Making a profit is yours for the time being …? ”Concludes McCook.
At home at home
According to Cointelegraph