Bitcoin (BTC) miners are sending record amounts of BTC to centralized crypto exchanges.
In a June 27 TweeterOn-chain analytics platform Glassnode reported an all-time high in revenue from Bitcoin miners sent to exchanges.
He noted that there is currently “extremely high exchange interaction” from Bitcoin miners who have sent a record $128 million to exchanges over the past week. This equates to 315% of their daily earnings, the analytics platform noted.
There were several spikes in revenue from miners sent to exchanges during the 2021 bull run as they took profits. There was also an influx of capitulations in late 2022 as markets bottomed out in the cycle.
However, this latest peak eclipsed them all by a considerable margin.
Usually, when miners send BTC profits to exchanges, they do so with a view to cashing in to cover their expenses and make a profit.
Last week would be a good time to do so as BTC hit its highest price of the year so far, hitting $31,185 on June 24.
At the time, CryptoQuant co-founder and CEO Ki Young Ju echoes the sentiment that the current P/E ratio was at an “attractive price for miners to sell”.
However, Bitcoin prices are still unaffected as the asset remains slightly above the $30,000 threshold at press time.
Nonetheless, the current $31,000 price zone is a major resistance level for BTC, with markets failing to break it in mid-April and again in late June. If the bulls cannot innovate, future losses are expected, especially if the miners start to liquidate.
Bitcoin mining profitability, or hash price, has increased slightly over the past week due to rising BTC prices. It is currently 0.076 TH/s (terahashes per second) per day, according to HashrateIndex.
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Although the Bitcoin price has risen over 88% since the start of the year, miners still face tough challenges. Profitability has fallen more than 30% since July last year and more than 80% since the peak of the 2021 bull market.
When combined with near-record hash rates of 377 EH/s and industry-leading difficulty levels, Bitcoin miners still face an uphill battle.
Rising hash rates and difficulty, combined with rising energy prices, put downward pressure on mining profitability. This means that selling their hard-earned Bitcoin can be an unpleasant necessity to cover expenses.
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