Bitcoin Miners’ Record Revenue Surges – $128M Sent to Exchanges
Bitcoin miners surpass expectations, transferring 315% of Daily Revenue to exchanges. BTC Prices are yet to react.
By Anna B Kiwanuka
Bitcoin (BTC) miners have reached a significant milestone by sending unprecedented amounts of BTC to centralized crypto exchanges. According to the latest data from the on-chain analytics platform Glassnode, Bitcoin miners have been actively engaging with exchanges, transferring a staggering $128 million over the past week. This figure represents a remarkable 315% of their daily revenue.
While there have been instances of miners directing profits to exchanges during the 2021 bull run and a capitulation inflow when markets hit rock bottom in late 2022, this recent surge far surpasses any previous occurrences. Typically, miners resort to cashing out and covering expenses when they transfer BTC profits to exchanges.
This surge in miner activity aligns with Bitcoin’s recent price surge, as the cryptocurrency reached its highest price of the year, briefly touching $31,185 on June 24. Experts, including Ki Young Ju, the co-founder, and CEO of CryptoQuant, have identified this price range as an opportune time for miners to sell, citing an attractive price-to-earnings ratio.
However, despite the influx of BTC from miners to exchanges, Bitcoin’s price has yet to experience a significant impact. As of now, the asset remains slightly above the $30,000 threshold. The $31,000 price zone has proven to be a major resistance level for BTC, with previous attempts in mid-April and late June failing to break through. In the event that bulls are unable to establish new ground, potential losses may occur, particularly if miners begin liquidating their holdings.
Although Bitcoin mining profitability, measured by hash price, has slightly increased due to the rise in BTC prices, miners continue to face numerous challenges. Despite Bitcoin’s year-to-date price surge of over 88%, profitability has declined by more than 30% since July 2022 and over 80% since the peak of the 2021 bull market.
Moreover, Bitcoin miners must contend with near-record hash rates of 377 EH/s and peak difficulty levels, exacerbating the uphill battle they face. The combination of rising hash rates, increased difficulty, and higher energy prices has placed significant downward pressure on mining profitability. Consequently, miners may be compelled to sell their hard-earned Bitcoin as an unpleasant necessity to cover expenses.
As Bitcoin’s market dynamics evolve, the ongoing interaction between miners and exchanges provides insights into the ecosystem’s liquidity and potential price movements.