TL;DR

• BTC Miners were super profitable in Feb — but come the halving, the BTC price will need to (mostly) hold above $70k if miners want to profit at current difficulty rates.

Full Story

You know that scene in The Office, where Jan walks in on Michael and the staff watching a movie on company time?

And when Jan asks how a movie could possibly make people work faster Michael says:

“They kind of have to…to make up for the time they lost watching the movie.”

Same thing applies to the Bitcoin halving and BTC’s price.

Confused? Lettuce explain…

Jeffries (the investment bank) just reported that Bitcoin mining was more profitable in February than in January after BTC rose from ~$42k to ~$61k.

(Ok, makes sense — if prices go up, profits go up).

But here’s the thing…

Come April 20th, once the supply of new Bitcoin being mined each day gets cut in half (from ~900 to ~450), Bitcoin will find itself in a ‘Dunder Mifflin Movie Monday’ situation…

Cause right now, miners are earning about +25% return on what they spend on energy each day — but once that daily return is cut in half…

The price kinda has to increase above $70k (and mostly stay there) — otherwise the average miner won’t be able to cover their costs.

Brb, got a hankering to watch Varsity Blues all of a sudden…