At a time of uncertainty, when Bitcoin price can hover near lows, it’s hard to know who will benefit. However, the miners managed to make a profit even if the investor didn’t seem to be making much.

Bitcoin miners make big profits

The Great Migration marked a milestone in the BTC mining sector as the hashrate dropped very low. Many miners had to close while other miners quickly relocated their equipment. This translates into a significant benefit for miners who are still active.

When Bitcoin price peaked in April, trading at $ 50 to $ 60,000, the miners’ total daily revenue was around $ 50 to 60 million. However, with around 40-50% of their competitors eliminated in a short period of time, daily sales dropped to $ 25-30 million.

Total sales of Bitcoin miners | Source: Glass knot

However, after the last difficulty adjustment, active miners make twice as much profit as before as Bitcoin continues to mine at the same rate.

Are miners accumulating bitcoin?

Even so, miners’ expenses seem to be falling. The Miner Outflow Multiple Index shows the ratio of miner’s expenses to the annual average. In the past, miners have cycled HODLing during a bear market (accumulation), increasing the distribution (increasing sales) during a bull market, and then decreasing the distribution when the market peaks (slower selling).

Here you can see how these numbers will change in the future. Miners’ spending will increase if the hashrate recovers quickly enough to offset the outflows. If the recovery is quick, it means the Chinese miners have already moved. When recovery is slow, it points in a different direction.

Miner Outflow Multiple Index | Source: Glass knot

In the history of Bitcoin, miners have always spent more than they accumulated. This means that the miner’s unused supply is always below this level compared to the annual moving average.

From 2020 this gap has not only narrowed, but the metric indicator line is now above the annual average. Reasons such as the macro currency landscape, superior funding options and the declining production of ASIC miners, which lead to less new competition, are some of the factors that lead to unexpected accumulation movements such as:

Annual MA of Miners for Unspent Supply | Source: Glass knot

When is the right time to buy BTC?

Ultimately, the growing demand for Bitcoin and the miners’ capitulation resulted in the Puell Multiple falling into the undervalued zone. Since this has only happened for the fifth time in Bitcoin’s history, it is as rare as a difficulty reversal. Additionally, the Bitcoin issuance rate recently fell to an all-time low of 0.71%, bringing the stock-to-flow ratio to 140.

Back then, Bitcoin was technically 2.37 times scarcer than gold.

Puell multiple | Source: Glass knot

Bitcoin inflation rate | Source: Glass knot

Although retail investors have been selling for some time, this is a good sign for them to accumulate BTC just like current miners do.

You can see the BTC price here.

Minh Anh

According to AMBCrypto

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