The Bitcoin () mining business is bigger than ever at current price levels, and new data shows just how unlikely a mass miner sell-off really is.
Asby popular Twitter account @venturefounder on Jan. 14, even at $42,000, the BTC/USD trading pair is around 20% above miners’ cost price.
Miner capitulation behind «worst» BTC price dips
Despite falling a full $27,000 below all-time highs, BTC is more enticing than ever for miners., an estimate of the total processing power dedicated to mining, .
Those concerned that a fresh BTC price dip could pressure miners into selling, meanwhile, received fresh assurances via data covering how much BTC/USD should trade at for them to break even.
Referencing the BTC production cost indicator from Charles Edwards, CEO of asset manager Capriole, venturefounder revealed that the breakeven point currently stands at $34,000.
«The worst dumps Bitcoin ever had were due to miners capitulation (December 2018, March 2020), when BTC fell below production costs, it is at risk for miner capitulation,» he added in comments.
«BTC was at risk for miner capitulation at $30k in May. The current production cost is $34k, 20% below current price.»
As such, there is no reason for miners to sell thanks to the profitability — as well as future perspective — of their operations.
«Historically, the electrical cost to produce a Bitcoin has represented a price floor in the Bitcoin market price,» another insight reads.
Mining shrugs off spot price moves this year
As Cointelegraph reported, miners are indeed voting with their wallets as BTC consolidates below $50,000.
Rather than selling, miners en masse have beenBTC more this month and last than during the highs.
This speaks both to a healthy balance sheet and resolve over the future — fears ofon the horizon are not currently weighing on the mining sector.
Going forward, current worst-case scenario estimates among well-known analysts foresee a BTC price floor.