Bitcoin Miners Are Bullish As Bit Digital Achieves $1 Billion Market Cap
According to BTC.com, Bitcoin (BTC), mining difficulty has increased by about 11% on January 9. The value is the biggest increase in nearly four months, exceeding 20 trillion for the first time.
Increasing Difficulty
Currently, the hashrate stands at a record level of around 148 EH / s. The difficulty adjustment, which occurs after every 2,016 blocks, ensures that the time between extracted blocks is 10 minutes on average.
Popular pseudonymous Bitcoin trader Hydronaut commented that the hashrate is on a tear, and if the difficulty is reset in 3 days, it will break the 20T mark for the first time in Bitcoin history.
Bit Digital Passes $1 Billion Market Cap
Bitcoin mining company Bit Digital (BTBT) already has a market value of more than $ 1 billion, up from $ 6.2 million last year.
The New York-based company’s shares are up nearly 7,500 percent over the past year and are currently trading a little over $ 25. Bit Digital has worked aiming at expanding its mining operations. Recently, it made a $ 13.9 million deal to buy 18,000 Antminer and Whatsminer machines.
Once accepted and implemented, the machine will double Bit Digital’s hashpower to over 2253 Petahash per second (PH / s). The company’s focus is on increasing mining capacity and is not surprising in line with the increase in mining revenue.
Riot Blockchain, Marathon Patent Group, and Hive Blockchain, other public mining companies, joined Bit Digital as billion-dollar companies.
Miners Remain Bullish
The simultaneous increase in hashrate and mining difficulty means that miners continue to devote large amounts of resources to deploying and investing in the network.
From mid-May onwards, the total outflow of BTC from miners gradually decreased on average – the opposite of the BTC / USD pair. As a result, the miners are still showing no sign of a big sale, even though Bitcoin’s price has been on the rise.
Additionally, the Miner Position Index (MPI), which calculates the BTC ratio and leaves all miners’ portfolios to a 1-year moving average, is currently 4.5. A value above 2 indicates that most of the miners have to sell.
It shows that the current miners are unwilling to part with BTC, especially as BTC shares are falling on the exchange and the price is in a strong and fast uptrend.
Therefore, it may make sense for some miners to hold their inventories and take advantage of the accelerating upward trend, which some predict may continue into December 2021.
Currently, each unit of BTC mined costs around $ 253,600, with approximately 9.44% coming from network transaction fees, according to the latest Clarkmoody’s data.
