Cryptocurrency miners are making the same profit despite the market crash. This is the conclusion reached by the analysts of the Glassnode resource. In April, when Bitcoin was trading in the $ 50,000 to $ 60,000 range, the network’s hashrate was at its highest.
Then the total profit from mining was $ 50-60 million per day.
Chinese crackdown helps miners maintain profitability even as bitcoin price falls by 50%
Now the daily total income from mining is ~ $ 25-30 million. However, due to the Chinese repression, miners have become smaller, so the participants in the process receive about the same.
“Same daily BTC emissions, fewer competitors sharing profits ,” notes Glassnode.
Thus, based on the results of the last difficulty adjustment, miners bear the same operating costs. Nevertheless, profitability has almost doubled, approaching April levels, experts say.
At the same time, miners have sharply reduced their costs even during the migration from China. Almost always, miners invariably spent more coins than they accumulated. Thus, the unspent supply had a structural downtrend, says Glassnode.
However, since mid-2020, the behavior of miners has changed dramatically. The structural downtrend has not only leveled off, but also reversed, analysts say.
The changing macroeconomic landscape may be driven by the fact that miners now have access to significantly more profitable financing options. For example, you don’t have to sell coins to cover costs. You can use crypto loans. Moreover , miners gained access to liquid options and futures markets to hedge risks.
We will remind, earlier the Chinese authorities launched a full-scale hunt for miners, which provoked migration. The authorities claim that in this way they want to protect the financial system and at the same time reduce carbon emissions.
82% of institutional investors will increase their investments in cryptocurrency by 2023
82% of institutional investors and wealth managers plan to increase the share of cryptocurrencies in their portfolios by 2023. These results were obtained during a survey by the Nickel Digital crypto fund.
50% of those surveyed expressed their readiness to “significantly” increase investment in cryptocurrency.
Only 7% expressed a desire to reduce this share and 1% – about plans to completely liquidate such positions.
The sample included representatives of structures from the USA, France, Germany, Great Britain and the United Arab Emirates.
The reasons that influenced the improvement in the perception of the cryptocurrency sector, the respondents named:
- long-term prospects for increasing the value of cryptocurrencies – 58% of respondents;
- an increase in psychological comfort when working with a new asset class after becoming familiar with the principles of its operation – 38%;
- growth in the number of companies that have started to master the cryptoindustry – 37%;
- reduction of legal uncertainty – 34%.
“Our analysis showed that 19 public companies with a capitalization of more than $ 1 trillion invested about $ 6.5 billion in bitcoin. A staggering $ 43.2 billion is stored in various trusts and exchange products based on digital gold. This trend will continue ,” he commented on the results Nickel Digital CEO Anatoly Krachilov.
Recall that in April, a law came into force in Germany, which allowed funds for institutional clients to invest up to 20% of assets in cryptocurrencies from July 1.
Earlier, Intertrust analysts predicted an increase to 7.2% of the share of cryptocurrencies in AUM hedge funds by 2026 (~ $ 312 billion at the time of publication of the study).
According to the latest PwC report, 21% of “classic” hedge funds with $ 180 billion in assets have already brought the share of the new class of instruments to an average of 3%. Most of them plan to increase this volume.