Bitcoin miners are experiencing a significant surge in revenue sent to exchanges, according to a tweet by Glassnode, an on-chain analytics platform.
The platform reported that miners had sent a record-breaking $128 million to exchanges in the past week, which amounts to a staggering 315% of their daily revenue.
While there have been previous spikes in miner revenue during the 2021 bull run, this recent surge surpasses them all by a considerable margin.
Typically, miners send their Bitcoin profits to exchanges to cover expenses and secure their profits. Given that Bitcoin reached its highest price of the year, touching $31,185 on June 24, this past week presented an opportune time for miners to cash out.
CryptoQuant co-founder and CEO Ki Young Ju echoed this sentiment, noting that the current price-to-earnings ratio was attractive for miners to sell.
However, despite the increased activity from miners, Bitcoin’s price remains relatively stable above the $30,000 threshold.
The $31,000 price level poses a significant resistance for Bitcoin, as it failed to break it both in mid-April and late June.
If bulls are unable to make progress and miners continue liquidating their holdings, the possibility of future losses looms.
Although Bitcoin’s price has surged by over 88% year-to-date, miners still face numerous challenges.
Profitability has dropped by more than 30% since July of the previous year and has plummeted over 80% since the peak of the 2021 bull market.
Moreover, record hash rates of 377 EH/s and peak difficulty levels further compound the obstacles faced by Bitcoin miners.
With rising hash rates, difficulty levels, and energy costs, mining profitability has been negatively impacted.
Consequently, miners may reluctantly need to sell their hard-earned Bitcoin to cover expenses, a situation that is far from ideal.
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