The behavior of miners is cyclical and is directly related to the price of Bitcoin. So, when they reach a historical maximum, they increase the supply to fix profits and cover operating costs. When the price is corrected while maintaining the complexity of the calculation, the yield of mining drops significantly, which forces miners to accumulate coins in anticipation of better days.
From the November highs, the price of Bitcoin has already decreased by 40%, while the daily yield of one of the best Antminer S19j pro installations worth $11 thousand has fallen from $25 to $15, and the average daily yield from one terahash has collapsed from 45 cents to 22 cents.
Large mining companies are increasing production capacity by attracting investment capital.
They will not resort to turning off installations even when negative returns are reached. Because of this, the complexity of calculations correlates worse with the price. So, it has been rising the last three times, despite the current 40% correction of Bitcoin. And, probably, in 10 days it will grow by another 0.8%.
In order not to work at a loss, most miners resort to accumulating Bitcoin. According to Glassnode, they began to save coins especially actively after the price dropped below $ 45 thousand. The volume of miners’ reserves reached 1.9 million BTC, or 10% of the total issue. If we exclude the lost coins, then the indicator is approaching 15%.
This time, the behavior of miners is consistent with the general mood: after the November sale, the accumulation of coins prevails in the market.
The reduction of supply in the market will support Bitcoin. Normalization of the situation in Kazakhstan, which is the second largest player in the mining market, will also have a positive impact.