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Here’s why ‘accumulating’ miners expect Bitcoin to cross $48,000

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China’s crackdown on crypto mining triggered a sharp fall in Bitcoin’s hashrate and price earlier this year, panicking traders worldwide. In spite of this, analysis by CryptoQuant showed that the Bitcoin hashrate was recovering “nicely” and that miners were still in net accumulation.

This development is crucial for traders, investors, and Bitcoin hodlers to note. A steadily increasing hashrate and the miners’ net accumulation are both signs that miners believe the coin’s price will rise. Venture Founder’s analysis also showed miners have been collecting inventory since June 2021.

The analyst who goes by the name, Venture Founder stated on CryptoQuant ,

“This shows that BTC miners are at least expecting BTC prices to go higher than $48k in the future. BTC hash rates (are) also in recovery as former Chinese miners begin mining again overseas.”

However, traders did not match the optimism of miners. Santiment just recorded a plunge to below-zero levels in its BTC Weighted Sentiment value. The metric suggested this was due to traders getting “restless” after Bitcoin fell from $50,000. Yet Santiment remarked that negative commentary could help lead to a “bounce.”

In addition to this, Bitcoin recently announced on Twitter that its miners had moved more than 40% of the hashrate all over the planet in just a few months with “no disruption of the network.” 

China’s hostility towards Bitcoin miners had caused the country’s average monthly hashrate share to dive from 72.98% to 46.04% in little more than a year, according to the Cambridge Bitcoin Electricity Consumption Index. After this, the USA and Kazakhstan both emerged as new havens for migrating miners.

The average monthly hashrate share of the USA was 16.85% in April 2021. This was thanks to the stability of its dollar, less regulatory interference, and even Nasdaq-listed companies joining the mining race.

Meanwhile, the fossil fuel and coal-rich Kazakhstan saw an average monthly hashrate share of 8.19% in April 2021 compared to 1.42% in September 2019. Though Kazakhstan currently regards cryptocurrency as a property, it permitted mining equipment to be imported without taxes. At last count, 17 official mining farms were operating in Kazakhstan.

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Sahana is a full-time journalist at AMBCrypto. She has a Masters in Journalism and her areas of study include crypto-regulation, digital society, privacy, and intersectionality. Ask her about film photography and philately.