Here I am looking at bitcoin price against hash rate futures (Q1 2021 in this case on FTX). There is a smooth trend moving up and to the right, indicating price is lifting off from hash rate (which is unable to keep up with demand for product).
Major factors I see here are:
1. Price moved out of accumulation faster than miners could respond/get machines online.
2. The newest S19 Pros, while more efficient, are still on 5 nm chips and have not made a marked jump in performance and the hash rate has languished.
3. There is a lot of competition for chips among other tech players like Apple, AMD, NVIDA, Qualcomm, etc. driven by 'work from home' tech demand. There is simply not enough chips to go around for building ASICS.
4. Large institutional players are not considering mining as part of their bitcoin thesis.
I expect to see the trend continue, and miners to be holding a large percentage of the inbound supply. This is going to limit flow rate against stock, and I see that applying a significant pressure on supply of coins as the demand is certainly pushing up.
Major factors I see here are:
1. Price moved out of accumulation faster than miners could respond/get machines online.
2. The newest S19 Pros, while more efficient, are still on 5 nm chips and have not made a marked jump in performance and the hash rate has languished.
3. There is a lot of competition for chips among other tech players like Apple, AMD, NVIDA, Qualcomm, etc. driven by 'work from home' tech demand. There is simply not enough chips to go around for building ASICS.
4. Large institutional players are not considering mining as part of their bitcoin thesis.
I expect to see the trend continue, and miners to be holding a large percentage of the inbound supply. This is going to limit flow rate against stock, and I see that applying a significant pressure on supply of coins as the demand is certainly pushing up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.