Bitcoin production cost anotated chart (screenshot). Source: @venturefounder/Twitter
As such, there is no reason for miners to sell thanks to the profitability — as well as future perspective — of their operations.
In a Medium post about his indicator from 2019, Edwards additionally noted that transaction fees awarded to miners give them an additional cushion against spot price incursions below production cost.
“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.
Related: Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report
Rather than selling, miners en masse have been accumulating BTC more this month and last than during the highs.
This speaks both to a healthy balance sheet and resolve over the future — fears of economic difficulties on the horizon are not currently weighing on the mining sector.
Bitcoin hash rate chart. Source: Blockchain
Going forward, current worst-case scenario estimates among well-known analysts foresee a BTC price floor no lower than $30,000.
