According to on-chain analytics platform Glassnode, Bitcoin miners are currently sending an unprecedented amount of BTC to centralized crypto exchanges. In a recent tweet on June 27, Glassnode reported that Bitcoin miner revenue sent to exchanges had reached an all-time high. Over the past week, miners had sent a staggering $128 million to exchanges, which accounted for approximately 315% of their daily revenue.
During the 2021 Bull Run, there were occasional spikes in miner revenue sent to exchanges as they sought to realize profits. Additionally, there was a significant influx of BTC during the market capitulation in late 2022 when the markets hit their cycle bottom. However, this recent surge in miner revenue surpasses all previous instances by a considerable margin.
Miners typically send their BTC profits to exchanges to prepare for cashing out and covering expenses. With Bitcoin reaching its highest price of the year so far, touching $31,185 on June 24, this past week presented an opportune time for miners to take profits and cash out.
Despite the increased miner activity on exchanges, Bitcoin prices have yet to be significantly affected, with the asset remaining slightly above the $30,000 threshold at the time of writing.
The current price zone of around $31,000 represents a significant resistance level for Bitcoin, as the market has failed to break it in mid-April and again in late June. If bulls are unable to establish new ground and miners begin liquidating their holdings, it may lead to potential future losses.
Bitcoin mining profitability, indicated by hash price, has seen a slight increase in the past week due to the rise in BTC prices. According to HashrateIndex, the current daily hash price stands at $0.076 TH/s (terahashes per second).
Despite Bitcoin’s price surge of over 88% year-to-date, miners continue to face significant challenges. Profitability has declined by more than 30% since July of the previous year and is down over 80% from the peak of the 2021 bull market.
Combining almost record-high hash rates of 377 EH/s (exahashes per second) and peak difficulty levels, Bitcoin miners are currently engaged in an uphill battle. The increasing hash rates, difficulty, and higher energy prices have exerted downward pressure on mining profitability. Consequently, miners may find it necessary to sell their hard-earned Bitcoin to cover expenses, a move that may not be entirely favorable for the market.
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