Throughout the course of the long crypto winter that extended throughout 2018 and into the early months of 2019, Bitcoin (BTC) miners faced deep losses that led many of them to shut off their rigs, which was seen by many as being detrimental to the crypto’s network health.

New data suggests that the price gains incurred throughout the first half of 2019 have now made Bitcoin mining profitable, but this may not necessarily be a bullish thing for BTC’s price.

Bitcoin Miners Incur Widespread Profitability

Bitcoin’s price has risen significantly throughout the first half of 2019, running from lows of nearly $3,000 to highs of just below $14,000.

Although BTC has dropped significantly from its year-to-date highs, it is important to note that it is still up significantly from its 2019 lows, which has been a great thing for the cryptocurrency’s miners.

Alex Kern, an analyst at Fundstrat Global Advisors, explained in a recent tweet that most popular mining rigs, including some older ones, are currently profitable, as the total cost to mine one Bitcoin is roughly between $7,300 and $8,500.

“From today’s @fundstrat Bitcoin mining update – @BITMAINtech Antminer S9’s cash and total cost of mining 1 $BTC = $7300 and $8500 (assuming $0.06 / kWh) – Older and newer generation mining rigs are profitable with BTC at current levels,” he explained.

From today's @fundstrat Bitcoin mining update… – @BITMAINtech Antminer S9's cash and total cost of mining 1 $BTC = $7300 and $8500 (assuming $0.06 / kWh) – Older and newer generation mining rigs are profitable with BTC at current levels pic.twitter.com/Pe7POApyp2 — Alex Kern (@AlexKernA) September 9, 2019

Is Profitable Mining Bullish for BTC?

Although having widely profitable miners may contribute to Bitcoin’s network health, it is not necessarily a bullish thing for BTC’s price, as miners are likely selling their profitably mined crypto in order to fund their capital expenses.

Thomas Lee, the co-founder of Fundstrat, spoke about the impact that profitable miners could have on BTC’s price, explaining that it is highly likely that they sell their profitably mined crypto in order to fund their expenses, which could mean that they are putting some downwards pressure on its price.

“Latest mining report from our quant team. Using S9 and $0.06/kWh, cash breakeven for $BTC mining is $7.3K vs price of ~$10k. Miners profitable and apparently some older rigs are also profitable. Their thesis remains if miners making $$$, they are BTC sellers to fund capex,” he said.

Latest mining report from our quant team. Using S9 and $0.06/kWh, cash breakeven for $BTC mining is $7.3K vs price of ~$10k. Miners profitable and apparently some older rigs are also profitable. – Their thesis remains if miners making $$$, they are BTC sellers to fund capex https://t.co/TZaEKHehRy — Thomas Lee (@fundstrat) September 9, 2019

Regardless of whether or not miners are dumping their Bitcoin onto the markets, their profitability is critical for promoting long-term fundamental growth.

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