Bitcoin Miners in Selling Mode; Booking High Profits With The Cost of Mining 1 BTC At Over $12k
Meanwhile, both hash rate and difficulty have hit an ATH today.
Over this weekend, the crypto market took a big hit.
Bitcoin went down hard from $42,000 on Friday to about $32,600 during Monday's wee hours.
Interestingly, around the new all-time high, Bitcoin miners sold a lot of their BTC stash, as per Miner Position Index, which went above 11.5.
This is not the first time in Bitcoin’s bull market that miners sold their BTC; they have actually been selling the digital asset ever since December when the hardcore bull rally started.
However, “the correction was tiny due to institutional buying power,” noted Ki Young JU, chief executive officer at CryptoQuant.
Meanwhile, the correction happened on the weekend, which has been when the retail usually gets involved. While panic selling led to a cascading effect on the prices, people were ready to buy the dip, as seen in the skyrocketing stablecoin transaction inflow.
Also, MRI has been sliding, currently at 143.3 (above 100 points to selling), as per ByteTree.
The market is now back to recovering, with BTC around $33,450.
This bull market has been proven to be extremely beneficial for the Bitcoin miners. With their bitcoin mining profitability going to $0.28 per 1 THash/s and average bitcoin transaction fees at $11.5, miners have been earning $40 million every day in revenue, up from less than $10 million in early October.
Meanwhile, the cost to mine one BTC is $12,168.84, based on the current difficulty, $0.04/kWh and S9 with 14 TH and 1100 watts (efficiency 85 W/T), said Thomas Heller, Chief Operating Officer at HASHR8.
Both the network difficulty and hash rate meanwhile hit an all-time high today — strong on-chain fundamentals point to a healthy network.