Analytics

Miners Are Not Interested in the Recent Rising BTC Price-Dec. 23th

Analysts at Bexplus found that BTC price continues to rise, and the price remains bullish at the daily level. However, miners are not interested in the increase of BTC price. The enthusiasm of miners during the year was far less than that of any price increase since 2017. In other words, if the price of BTC continues to rise, miners will miss the opportunity to expand mining revenue.

The rise in the price of Bitcoin will encourage miners to invest more computing power in order to expand mining profits during the price recovery period. But at present, miners have not actively increased their computing power to cater to the rise in BTC price. From the correlation performance between Bitcoin’s market value recovery and computing power growth, the correlation between the two on December 23th was still below 0, and the value was only -0.17. It can be seen that the action of miners to actively increase computing power is not obvious. Although the correlation index has rebounded from the lowest 0.658 to -0.17 since mid-August 2020, if the correlation rises above 0, it can show that miners are actively increasing their computing power.

From the performance of miners, the bull market of BTC is facing important nodes. Continue to rise may boost the crazy mood of miners. From a numerical point of view, the correlation between the growth of miners’ computing power and the rebound of BTC’s market value is limited, which means that the price of BTC has a long way to go.

In terms of mainstream currencies, XRP retreated to a minimum of $0.316 in the short-term. At the same time, there is not much room for ETH’s short-term price increase, and the increase is not large but it retreats twice. This shows that the turmoil of mainstream currencies is not over, and there are many risk factors that need to be paid attention to in the near future.