Bitcoin miners remain loyal hodlers of BTC, taking their time to get rid of it and keeping their coin holdings near record highs.
According to on-chain analytics provider Glassnode, miners have been steadily building up their unspent bitcoin reserves this year. At the moment, just 500 BTC falls short of the all-time high of 1.778 million BTC set in December 2020.
As commented in Glassnode, we are talking about coins, “which miners received as a reward for creating blocks, but which were never spent on the network.”
Miners have been accumulating earned coins since March 2020 – after a flurry of coin sales in the first two months of 2020.
Unspent BTC Stocks – Glassnode
It is widely believed that active sales of their coins by miners is a bad sign for the crypto market. Meanwhile, the situation now looks favorable in this regard. This trend towards the accumulation of coins is confirmed by another on-chain indicator: in recent months, analysts have noted an outflow of bitcoins from exchanges.
Profitability mining going down, hashrate is growing
According to Bitinfocharts, mining profitability has been declining since mid-October and currently stands at $ 0.235 TH / s per day. Compared to November 9, the indicator dropped by 52%. Then it was equal to $ 0.49. As a result, now the profitability of mining is at the lowest levels since the end of June, when the hash rate dropped sharply due to the massive migration of miners from China.
Mining profitability – Bitinfocharts
Now hash rates have come to life again and look very positive. At the time of writing, the hash rate on the BTC network was 173.7 EH / s. The metric has recovered 150% after the crash in late June to 69 EH / s and now reflects the healthy state and high processing power of the network.
As a reminder, the historical maximum in terms of hash rate was marked, according to Bitinfocharts, on May 13 at 197 EH / s. Now the average indicator falls short of this value of only 14%.
On December 16, analysts at Glassnode reported that Bitcoin’s mining difficulty is only 3.5% below its all-time high. They noted that it took the market 180 days to almost completely recover from the 52% drawdown during the Great Migration. The mining difficulty indicator has been growing since mid-August, demonstrating that more and more miners are competing for rewards.
Meanwhile, the BTC rate began a new week with a decline, and over the past 7 days it has lost about 7% of its value. At time of writing, the coin is trading in the $ 46,200 region. The price has slid below the 200-day moving average support and may form a “dead cross” with the 50-day MA.
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