Categories: Bitcoin Business

Research: Bitcoin Miners are Widely Profitable; Is This Bullish?

Click here to view original web page at www.newsbtc.com

Throughout the course of the long crypto winter that extended throughout 2018 and into the early months of 2019, Bitcoin (BTC) miners faced deep losses that led many of them to shut off their rigs, which was seen by many as being detrimental to the crypto’s network health.

New data suggests that the price gains incurred throughout the first half of 2019 have now made Bitcoin mining profitable, but this may not necessarily be a bullish thing for BTC’s price.

Bitcoin Miners Incur Widespread Profitability

Bitcoin’s price has risen significantly throughout the first half of 2019, running from lows of nearly $3,000 to highs of just below $14,000.

Although BTC has dropped significantly from its year-to-date highs, it is important to note that it is still up significantly from its 2019 lows, which has been a great thing for the cryptocurrency’s miners.

Alex Kern, an analyst at Fundstrat Global Advisors, explained in a recent tweet that most popular mining rigs, including some older ones, are currently profitable, as the total cost to mine one Bitcoin is roughly between $7,300 and $8,500.

“From today’s @fundstrat Bitcoin mining update – @BITMAINtech Antminer S9’s cash and total cost of mining 1 $BTC = $7300 and $8500 (assuming $0.06 / kWh) – Older and newer generation mining rigs are profitable with BTC at current levels,” he explained.

From today's @fundstrat Bitcoin mining update…

@BITMAINtech Antminer S9's cash and total cost of mining 1 $BTC = $7300 and $8500 (assuming $0.06 / kWh)

– Older and newer generation mining rigs are profitable with BTC at current levels pic.twitter.com/Pe7POApyp2

Is Profitable Mining Bullish for BTC?

Although having widely profitable miners may contribute to Bitcoin’s network health, it is not necessarily a bullish thing for BTC’s price, as miners are likely selling their profitably mined crypto in order to fund their capital expenses.

Thomas Lee, the co-founder of Fundstrat, spoke about the impact that profitable miners could have on BTC’s price, explaining that it is highly likely that they sell their profitably mined crypto in order to fund their expenses, which could mean that they are putting some downwards pressure on its price.

“Latest mining report from our quant team. Using S9 and $0.06/kWh, cash breakeven for $BTC mining is $7.3K vs price of ~$10k. Miners profitable and apparently some older rigs are also profitable. Their thesis remains if miners making $$$, they are BTC sellers to fund capex,” he said.

Latest mining report from our quant team. Using S9 and $0.06/kWh, cash breakeven for $BTC mining is $7.3K vs price of ~$10k. Miners profitable and apparently some older rigs are also profitable.

– Their thesis remains if miners making $$$, they are BTC sellers to fund capex https://t.co/TZaEKHehRy

— Thomas Lee (@fundstrat) September 9, 2019

Regardless of whether or not miners are dumping their Bitcoin onto the markets, their profitability is critical for promoting long-term fundamental growth.

Featured image from Shutterstock.

Tags:bitcoinbtccrypto BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Futures Contracts Headed Our Way in Early 2020

Futures exchange operator CME group has announced that it plans to begin offering bitcoin futures contracts starting in early 2020.… Read More

4 hours ago

History Suggests Bitcoin is Currently in Early Stages of Next Bull Run

After briefly incurring a significant influx of buying pressure, Bitcoin (BTC) has once again lost its momentum and is now… Read More

4 hours ago

Blackstone CEO Sees Blockchain’s Merit, But Is Not a Fan of Bitcoin

The traditional investment world has largely found itself split on whether or not Bitcoin and other cryptocurrencies constitute sounds investments,… Read More

4 hours ago

Crypto Tidbits: Bakkt Bitcoin Futures Inbound, NASA Hints at Blockchain Ambitions, Libra in Hot Water

Another week, another of Crypto Tidbits . While Bitcoin (BTC) effectively ended the week where it started in terms of… Read More

4 hours ago

Is Bitcoin Diamond growing in popularity?

Bitcoin Diamond (BCD) is a late-2017 implementation of the Bitcoin protocol that offers a larger supply, bigger block size, and… Read More

4 hours ago

3 Proven Methods To Earn Money Online With Bitcoin

It's possible to pay your bills with money earned from the cryptocurrency market. Everyone can generate additional income, or even… Read More

4 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More