This analysis focuses on Bitcoin’s miners’ overall earnings and the Puell multiple, as shown by on-chain indicators.
BTC Miners’ Overall Earnings
An analytics data has revealed that BTC overall miner earnings reduce by 50% almost every five years. The BTC halving event is the probable cause for this revenue decrease. The last one happened around June last year.
Aside from July 2020, when there was a sharp drop, the indicator shows that overall earnings for miners have been between 960 BTC and 1060 BTC since around the middle of last year. As of this writing, gross profits for miners is at about 890 BTC, similar to their last year November levels before the uptrend towards BTC’s peak price of April.
A famous trader with the Twitter username @BTC-archive gave a pictorial representation showing that BTC miners’ accounts are rising again. Historically, a rise in BTC miner accounts is often the start of a bullish movement over the long term. Hence, proof of the BTC market’s strong sentiment is this rise in BTC miners’ accounts.
The Puell Multiple Indicator Analysis
This multiple results from the division between a minted tokens’ value and its annual moving average. When this value is between 0 and 0.5, it indicates market bottoms. But when this multiple’s value is between 4 and 10, it means market cycle tops.
Puell Multiple For BTC. Source: Glassnode
Since the start of this year, this value hasn’t been up to 4. Its highest has been 3.44, a value record in march 2021. As of this writing, this multiple’s value is 1.26, and it often characterizes the mid-point of any bullish trend. Hence, it is an indication that BTC’s bullish price action isn’t over yet.
Massachusetts Senator Asks For Greenidge’s Mining Environmental Impact
Massachusetts senator, Sen. Liz Warren, has doubted that Greenidge’s mining operation in New York is completely carbon-neutral. Hence, she has asked the publicly traded company to prove her wrong by writing an open letter to them. The senator also voiced her worries over the firm’s energy consumption rate.
Part of Warren’s letter to the crypto mining firm stated that “Greenidge’s mining operations and high energy consumption rate is a cause for worry in terms of its impact on the environment and increased energy usage costs.”
A few months ago, environmentalists in New York disagreed with the firm about their mining operations being genuinely carbon-neutral. They also accused the firm’s mining operations of causing a rise in the temperature of the region’s famous lake. Recently, BTC miners switched to long-term energy resources to significantly lower energy costs for their mining operations.
The bitcoin mining council’s latest poll showed a 4% rise in the energy consumption rate by BTC miners between Q2 and Q3 2021. Warren wrote in her letter that BTC miners’ energy consumption rate is almost the same as what obtains in some South American countries and Denmark. This is the second time Warren would request details about a miners’ operations. As of this writing, Greenidge is yet to respond to any comments.