Bitcoin Miners Cut BTC Holdings As ‘Mining Cost’ Approaches $65K
With the price of BTC nearing $43,000, data shows that Bitcoin (BTC) miners could be among the biggest profit makers.
On-chain analysis Glassnode's latest figures confirm that bulk shipments will continue until the end of the year.
Commentary: Bitcoin Miners “Unfortunately Publishing”
Bitcoin miners have been reducing their BTC balances virtually steadily since mid-October.
In the 24 hours until December 28 – the last day Glassnode numbers are available – the BTC balance in the mining wallet has decreased by 700 BTC.
Miners' balance is down 12,700 BTC from the local peak on October 22nd.
During that period, BTC/USD rose from around $30,000 to around $45,000, then moved closer to the yearly candlestick.
But for Ali, a well-known trader and social media analyst, the impact of the mining operation could weigh on the possibility of price continuation. Citing separate numbers from on-chain analytics platform CryptoQuant, he called the scale reductions “significant.”
In a dramatic move, #Bitcoin miners have sold over 3,000 #BTC in the last 24 hours, taking in nearly $129 million. This high selling price can affect the price of $BTC. pic.twitter.com/mUl4ebDwpm
— Ali (@ali_charts) December 28, 2023
Amidst the highest BTC price levels since April 2022, Litecoin saw a significant increase in revenue in Q4.
Analyzing the cost base, Charles Edwards, founder of Quantitative Bitcoin and digital asset fund Capriole Investments, emphasized how profitable the sector currently is.
In an article posted on X (formerly Twitter) this week, he said, “Bitcoin mines are absolutely being published.”
“At $64k per mine, you're getting 50% more on the price of Bitcoin.”
The accompanying chart shows production costs and profit margins in Bitcoin, per Capriol.
Bitcoin's “most important” halving
As Cointelegraph reports, the upcoming block subsidy halving is being closely watched by market participants as a key point in Bitcoin's lifespan.
Related: Why Is Bitcoin Price Stuck?
Filbfilb, co-founder of trading group DecenTrader, predicts that miners will try to accumulate BTC shares in advance of the block reward falling 50% to 3.125 BTC.
In an interview earlier in the year, Edwards, for his part, called the April halftime event “very important” and a “tipping point.”
“By 2024, Bitcoin will definitely be the world's heaviest asset. “Bitcoin's inflation is half that of gold, overtaking gold as the best store of value,” he told Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
