TL;DR Breakdown
- Bitcoin miners unspent supply is just 500 BTC short of its ATH.
- Miners are hodling their BTC despite low mining profitability.
- BTC hash rate is just 14% away from its ATH.
According to Galssnode, the total amount of Bitcoin held by miners are just 500 BTC short of its 1.778 million all-time high. These are the Bitcoins miners earn as a reward for solving a block on the blockchain. However, there’s currently a massive amount of BTC that has never been withdrawn or spent on-chain by the miners.
This means that BTC miners are continuing to HODL their coins despite the ongoing bear market. This is a significant trend because it shows that miners have massive confidence in the crypto, even though a large part of the market continues to sell-off.
Bitcoin mining profitability has also gone down significantly in recent months. BTC mining profitability went up to $0.45 per THash in November. Currently, it’s down to $0.2637 per THash. It’s fallen 52% in 40 days, which is mainly due to China’s ban on crypto mining. Despite this low profitability and current market crash, miners are continuing to hold their Bitcoins. This is a positive sign for the leading crypto, as large amounts of holdings can create resistance levels in the bear market.
Bitcoin hash rate is increasing
BTC hash rates are very positive at the moment at 173.7 Exhashes per second. EH/s measures the network computing horsepower for mining. BTC hash rate has gone up by over 150% in the last 6 months, and it’s just sitting 14% below its all-time high of 197 EH/s.
The high hash rate indicates that Bitcoin mining is becoming more secure, as more computer power is being needed to control the network. Increasing hash rate on BTC often leads to a low circulating supply, which can initiate a bull market. We’ve seen a similar trend in April-May this year.
With wider adoption and strong support from miners, BTC holders remain optimistic about a potential bull run on the horizon. A recent Twitter poll revealed that most users think Bitcoin will hit a new all-time high before crashing again. The leading crypto is currently trading at $47,057.