The interest in BTC is still very high which is reflected in the current price that hovers above the $9000 mark. What it means is that more people are getting into BTC mining industry. Literally thousands of mining facilities all over the globe and a massive army of unaccounted individual miners are working every day. How does this massive global operation affect the market price of BTC?
Forbes published a very interesting study in 2018. The research analyzed compound energy consumption (estimated) and other costs to determine the price of mining a single BTC. The result was quite interesting: at the current stage, a single BTC costs around $5300 to produce. The market price is nearly two times higher meaning that the ecosystem works.
It is hard to determine whether the market is actually affected by mining industry in general. However, the profitability of mining operations is key to the long term survival of the currency. Without miners, BTC will seize to exist. Miners will never invest in expensive mining operations if their efforts are not rewarded financially. So, on the fundamental level, BTC mining is strongly connected to the price of the currency on the financial market.
On the other hand, energy expenditures have been dramatically reduced by many professional miners. Some experts say that Chinese mining giants managed to reduce their energy consumption by 30% — 40% over the course of the last year yet we didn’t see a sudden price reduction on the market.
There are several more factors to consider.
The scale of mining operations should affect the market price of bitcoin, but it does not seem that this is the case. Without additional data and more research, telling whether miners affect the price or not is nearly impossible. We will have to wait to receive a definitive answer.