Bitcoin miners are notably taking profits off the table, a trend that has been highlighted by crypto markets analytics platform, Glassnode. The Glassnode data shows that events that are crucial on-chain trends can also be well linked to real-life demands.
The Bitcoin mining ecosystem took a massive plunge back in the second quarter following the clampdown on miners by Chinese authorities. Obeying the quit notice issued by the government, miners went on the largest migration in history, with millions of hardware machines plugged offline. The resultant effect was a plunge in the mining difficulty, leading to an all-time low of 13.67 T recorded back in July.
It is worth noting that reducing mining difficulty translates effectively to more profitability for the miners already running on the network. Per the Glassnode data, the “miner USD revenue per hash has now risen back to July 2019 levels of $380k per Exahash, making operational miners exceptionally profitable on a historical basis.”
Irrespective of this reality, the Bitcoin network health is increasingly getting back to normalcy, with the difficulty climbing back to the levels before the hunt down began.
“The Bitcoin mining market continues to recover after half of the hash-power came offline during the Great Migration out of China. The 14-day median hash-rate has recovered to 128 EH/s, which is approximately 29% below the all-time-high, and reflects a 42% recovery from the July lows.”
The growing hashrate is indeed indicative of the miners finding a new home in other countries, including Canada, the United States, and Kazakhstan amongst others.
Miners Taking Profits Indeed
Bitcoin miners are notably taking profits, with speculations on where the funds are being pumped into. On-chain data reveals that about 2,900 BTC have been spent from miner’s balances thus far, a figure that is about $150 million based on the current price of the digital currency at $51,727.46.
Glassnode provides a list of possible places the funds might be pumped into.
“This may be a combination of affected miners in China obtaining fiat liquidity to cover costs, or operational miners taking profits and de-risking after the May sell-off. It is also likely that some of this revenue is earmarked for redeployment into facility expansion, and acquiring hardware from second-hand or new ASIC markets.”
Despite this spending, however, the miner net position is currently balanced with mined coins and those spent balancing out.