Weekly Newsletter B.TOP mining insights (week 41,2020)

I. Price correlation

BTC Price vs S&P 500 ETF

Since the beginning of 2020, Bitcoin price has been showing record-high levels of correlation with traditional markets, and in the months of February, March, April and October, the correlation between the S&P 500 and BTC was greater than 0.6.

BTC Price vs S&P 500 ETF
SP&BTC monthly correlation

On the other hand, the weekly data shows a higher correlation between BTC and S&P 500, reaching 0.0695 in the past week (week 40).

SP&BTC weekly correlation

BTC Price vs Gold Price

While Bitcoin has been showing increasing correlation with the traditional stock market, the same can be said for gold which had a 0.847 correlation with the Bitcoin in the past week (week 40).

BTC Price vs Gold Price
Gold and BTC weekly correlation

II. Other factors affecting BTC Price

BTC Number of Whales (Entities with balance > 1k)

Throughout 2020, the number of BTC whales (entities holding at least 1,000BTC) has been growing constantly, however, since the end of September, the number of whales has started declining — the first decrease since late 2019.

Historically, the decline in the number of BTC whales often is a signal of increased interest from retail investors and the beginning of a bull run.

Number of whales(Entities With Balance ≥1k, source: Glassnode)

III. Mining Profitability

Mining revenue USD/day for 1TH/s

The mining revenue per TH/s is the result of a combination of mining difficulty and Bitcoin price. The chart below indicates that the mining revenue is essentially in sync with the Bitcoin price. Since the Bitcoin halving in May, the mining revenue per TH/s has decreased significantly and it is now stable at around 0.07 USD/Day for 1TH/s. With the end of the rainy season in Sichuan, China, a number of older models will reach their operational break-even price, causing the Bitcoin network hashrate to drop and the mining revenue per TH/s to increase.

Mining Revenue in USD per Th/s

Profitability of different miners

Currently, one of the most popular Bitcoin mining machines is the Antminer S19 series. Due to its excellent power efficiency, the S19 miner has a profitability that is not as volatile as that of other models, which means its daily output would remain stable. In the future, if the mining difficulty decreases, its daily output in USD will increase at a fast rate. With B.TOP, users across the world can enjoy electricity at cost price from across China, further reducing the S19’s power consumption ratio, minimizing risks and earning extra mining revenue.

S19 Daily Profitability in USD

IV. Altcoin mining

ETH Mining revenue USD/Day for 1M/s

Since July, as DeFi’s popularity grows, Ethereum price is soaring and the Ethereum network is becoming increasingly congested. At some times, the ETH transaction fees accounted for more than 75% of miners’ total revenue. However, this high revenue scenario was not sustainable. As more new mining machines went online, the Ethereum network hashrate skyrocketed from 170T in May to 250T, a 47% increase! The mining profitability per MH has now fallen back and can be expected to continue to decline in the coming weeks.

ETH Mining Profitability in USD

Read more from B.TOP:
👉 Monthly Mining Report (September 2020)
👉The potential pitfalls of buying mining machine futures (Part 2)

👉Join us on telegram.

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