Bitcoin miners continue to hold, unspent supply nears record high

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Bitcoin miners are increasingly reluctant to sell their reserves as the amount of unspent BTC held by miners continues to rise.

According to chain analytics provider Glassnode, the amount of bitcoin held by miners is only 500 BTC from its all-time high.

Miners currently hold just under an all-time high of 1.778 million BTC. The maximum figure was reached in December 2020. Glassnode explained that “these coins are issued to miners as a reward for solving a block, but were never spent on chain.”

Miners have been piling up since March 2020 following a massive sell-off in the first two months of this year.

Unspent BTC supply – Glassnode

It has been observed that this data does not look good if the miners start unloading everything at the same time as they did earlier this year. Bitcoin has also exited trading in recent months, which is another indication of the build-up.

Declining mining profitability, increasing hash rate

According to BitInfoCharts, mining profitability has actually fallen since mid-October and is currently $ 0.235 per day per TH / s (terahashes per second). It was down 52% from $ 0.49 per day per TH / s on November 9. Profitability is currently at its lowest since the end of June, when hash rates fell following the migration of miners from China.

Hash rates look pretty healthy at the moment at 173.7 EH / s (exahashs per second). The metric, which is a measure of the computing power of the network, has gained 150% since it collapsed to 69 pe / s in late June.

According to BitInfoCharts, Bitcoin’s average hash rate is now only 14% off its May 13 high of 197 EH / s. On December 16, Glassnode reported that Bitcoin’s difficulty was only 3.5% below its all-time high, adding:

It took 180 days to recover almost all of the 52% of the network hash power taken offline during the Great Migration.

Difficulty, which is a measure of the complexity of math calculations for bulk rewards, or finding a hash below a given goal, has increased since mid-August as more miners vie for the reward.

On December 20, BeInCrypto reported that there were still a number of mining operations in China operating under the radar.

Bitcoin Price Outlook

BTC prices started the week down 2.2% on the day according to CoinGecko. At time of printing, the asset was trading at $ 46,000 after losing 8% in the past seven days.

It has now slipped below the support of the 200 day moving average and a grim “death cross” is approaching with the faster 50 day moving average.

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