- Miners’ balance sheets have been on an upward spiral in recent weeks.
- BTC is down over 2% in the last 24 hours and a number of metrics looked bearish.
The Bitcoin [BTC] The mining sector has experienced tremendous growth in recent months. One possible reason for the growth could be that miners were actually making profits.
Read Bitcoins [BTC] Price prediction 2023-24
However, things could change soon as BTC is expecting its next halving, which will cut miner rewards to half.
Bitcoin’s mining industry is growing ahead of the halving
Especially those from Coinwarz facts revealed that BTC’s hashrate has increased significantly in recent months. At the time of writing, BTC’s hashrate was 517.41 EH/s. Furthermore, James V. Straten, a popular crypto researcher and data analyst, pointed out that the problems with BTC also continue to grow.
Of #Bitcoin The difficulty continues to increase, reaching record highs, with a halving approaching in April.
The current all-in costs for mine #BTC amounts to approximately $24,000.
The halving could put pressure on miners #Bitcoin next year less than $40,000.
— James V. Straten (@jimmyvs24) October 10, 2023
The reason behind this growth could be the profits amassed by miners. The current all-in cost for mining BTC is almost $24,000, and at the time of writing: BTC‘s price remained above the $27,000 mark, showing that miners were making a profit.
In fact, that could also be the reason behind the sharp increase in miners’ balances, which reflected their willingness to hold BTC.
Source: Glassnode
However, as BTC’s next halving approaches, it becomes important for BTC to increase its price to keep miners profitable. This is because after the halving, the reward for miners is reduced to halving.
Straten mentioned in the tweet that halving could put miners under pressure if Bitcoin falls below $40,000 next year. Therefore, let’s take a look at BTC’s on-chain metrics to see if BTC’s price can start its bull rally soon.
Will Bitcoin Start a Rally?
The aforementioned data suggested that it was crucial for Bitcoin to increase its value in the coming months to maintain its growth in the mining sector. However, things on the ground did not indicate that BTC was about to initiate a bull rally.
In the last 24 hours alone, the price of BTC fell by more than 2%. At the time of writing this was the case trade at $27,039.44 with a market cap of over $527 billion.
In fact, CryptoQuant’s data showed that the king of cryptos was actually under selling pressure. This was illustrated by BTC’s Exchange Reserve, which has increased in recent days.
Moreover, net deposits in the exchanges were also high compared to the average of the last seven days, proving the fact BTC was under selling pressure at the time of writing.
Source: CryptoQuant
Is your portfolio green? look at the BTC profit calculator
Nevertheless, nothing can be said with utmost certainty as some metrics were also bullish. For example, BTC’s aSOPR was green at the time of writing. This meant more investors sold at a loss, which generally signals a market bottom.
Furthermore, Bitcoin’s Binary CDD was also in the green, indicating that long-term holders’ confidence in BTC was high.
Source: CryptoQuant