Crypto News

Are Bitcoin Miners Taking Profits? Is the Crypto Rally Coming to an End?

Bitcoin Trivia of the Day

A Bitcoin network is faster than the fastest supercomputer in the world! The Summit, which is the world’s fastest supercomputer has a processing power of 122.3 petaflops. It is a quadrillion floating-point operations per second. That’s not even fast for the Bitcoin network with 80, 704, 290 petaflops of processing power. Want to be one of the fastest rising millionaires alive? Invest in the world’s most in-demand cryptocurrency. Register for free now!

Bitcoin miners, a crucial group in the growth and operation of the BTC network, have sprung up in different parts of the world in the past two years. According to aggregate data provided by hashrateindex, six ASIC financing deals were executed in 2020 worth $47.84 million. The following year saw 26 financing deals completed worth approximately $662.25 million. Come last year, crypto miners raised a total of $641.80 million in 18 deals.

However, the situation turned for the worst after crypto prices significantly shrunk by the end of last year. As such, several crypto mining firms have filed for bankruptcy protection with others selling rigs to pay off their debts. The situation has been worsened by the rising global inflation that has resulted in high electricity bills.

For instance, most updated Bitcoin mining rigs on average return a daily profit of about $5 depending on the location and difficulty.

Bitcoin Market in 2023

Fast forward to the fourth week of 2023, and Bitcoin price has gained about 34 percent to trade around $22.6k on Wednesday. As a result, most miners are offloading both old and newly minted coins to stay on top of their accumulated debts.

“The sentiment among miners is better than in a long time. For many bankruptcy threatened players, the sudden increase in the bitcoin price is a lifeline,” said Jaran Mellerud, an analyst at Hashrate Index.

Notably, the January 2023 Bitcoin rally has mostly been attributed to whale account accumulation in large quantities. According to on-chain analytics firm Santiment, Bitcoin whales have accumulated a total of 70k BTC in the past three weeks.

Data from @santimentfeed shows that #Bitcoin whales have accumulated around 70,000 $BTC over the past two weeks worth ~$1.4 billion. #BTC

— Ali (@ali_charts) January 21, 2023



Exit mobile version