- Bitcoin miners have deposited a record-breaking $128 million in centralized exchanges, amounting to 315% of their daily revenue.
- Despite this surge in exchange inflows, Bitcoin prices remain unmoved, lingering above the $30,000 mark.
In an unprecedented move, Bitcoin miners have been transferring record levels of revenue to centralized cryptocurrency exchanges. According to a tweet by on-chain analytics platform Glassnode on June 27, Bitcoin miner revenue sent to exchanges has hit an all-time high.
The data showcases an “extremely high exchange interaction” from Bitcoin miners, who dispatched a whopping $128 million to exchanges within the past week. This substantial sum represents approximately 315% of their daily earnings, as indicated by the analytics firm.
This recent surge towers above previous spikes in miner revenue transferred to exchanges during the 2021 bull run when miners capitalized on market highs. There was also a noticeable inflow in late 2022 during a market downturn, signaling miner capitulation.
Commonly, miners transfer their BTC earnings to exchanges to liquidate their holdings, intending to cover operational expenses or realize profits. Given Bitcoin’s price surge to $31,185 on June 24, its peak for the year so far, the past week presents an opportune moment for such actions.
CryptoQuant co-founder and CEO Ki Young Ju, on the same line, stated that the prevailing price-to-earnings ratio offered an “attractive price for miners to sell.”
Interestingly, these massive exchange inflows from Bitcoin miners have yet to influence Bitcoin prices. As of the time of writing, Bitcoin hovers just above the $30,000 mark.
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However, Bitcoin’s current price zone around $31,000 is a significant resistance level, with previous failed attempts to break it in mid-April and late June. If bulls fail to forge ahead, future losses are anticipated, particularly if miners begin liquidating their holdings.
Bitcoin mining profitability, also known as hash price, experienced a minor rise over the last week, owing to the uptick in Bitcoin prices. It currently stands at $0.076 TH/s (terahashes per second) per day, as per HashrateIndex.
Despite Bitcoin’s year-to-date price increase of more than 88%, miners confront substantial challenges. Profitability has declined by over 30% since July last year and is down over 80% from the apex of the 2021 bull market. Alongside this, almost record hash rates of 377 EH/s and peak difficulty levels add to the miners’ difficulties.
The combination of increasing hash rates, difficulty levels, and elevated energy costs are exerting downward pressure on mining profitability. Consequently, the selling of Bitcoin might emerge as a necessary yet unwelcome strategy for miners to cover their expenses.
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