Bitcoin Miners Are Selling Again: CryptoQuant

Bitcoin (BTC) has fallen 4.5% in the past seven days, hitting a monthly low of $65,000. This drop in the value of the digital asset could be related to the increase in sales of mining entities.

In CryptoQuant’s latest weekly report, analysts revealed that the number of BTC sent from Bitcoin mining entities to exchanges has reached a two-month high amid a decline in their revenue due to transaction fees lower

Miner selling hits two-month high

On June 9, the hourly transfer of BTC, mainly from the btc.com mining pool, to the crypto exchange Binance reached a two-month high of more than 3,000 BTC. The next day, miners sold at least 1,200 BTC through over-the-counter counters, marking their highest daily volume since late March, when daily volume topped 1,600 BTC.

Major Bitcoin mining companies have also increased their selling activity. One such is US-based Marathon Digital, which has offloaded 1,400 BTC so far in June. The entity’s June sale represents 8% of its total holdings, a significant increase from the 390 BTC it sold in May.

The surge in Bitcoin miners’ sales comes as earnings remain low after the halving. Miners’ daily earnings have fallen to roughly $35 million, down 55% from a peak of $78 million in March.

Daily Bitcoin transaction fees are now around 65, a massive drop from the 117 recorded before the halving. Additionally, average transaction fees have remained low in dollar terms, despite the record number of transactions seen on the network in recent weeks.

Miners face a high hashrate

While miners are increasing their sales due to lower income, the hashrate of the Bitcoin network has remained high. The hashrate has only dropped 4% since the reduction in mid-April, which has increased the pressure on miners.

A high hashrate means that miners need more computing power, energy and time to verify transactions and add blocks to the chain. It also means that miners are underpaid or very underpaid. Notably, they were well paid at the time of writing.

Bitcoin’s hashrate currently stands at 599 EH/s, slightly lower than the pre-halving rate of 622 EH/s. Miners now compete for lower block rewards in terms of BTC under high pressure.

CryptoQuant analysts said that a period with low miner income and a high hashrate indicates low prices. It remains to be seen how far BTC can go before the market recovers again.

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