Bitcoin miners have transferred up to 315% of their daily earnings to exchanges, yet little change has been seen in BTC pricing.
On June 27th, the on-chain monitoring company Glassnode tweeted that record numbers of Bitcoins are being sent to centralized crypto exchanges by miners. They noticed a record-high amount of Bitcoin miner money being transferred to exchanges, which suggests active communication between miners and exchanges.
Glassnode reported that Bitcoin miners had been “extremely high exchange interaction” recently, sending a record $128 million to exchanges. The extent of miner activity on exchanges is highlighted by the fact that this sum is 315% of their daily income.
There have been instances of increases in miner earnings being submitted to exchanges when miners reaped profits throughout the 2021 bull run. Additionally, as markets neared their cycle bottom in late 2022, there was a period of capitulation influx.
The price of Bitcoin hasn’t changed much despite the rise in miner activity on exchanges; as of the time of publication, it is still just above the $30,000 mark.
However, the current price range of roughly $31,000 represents a significant barrier for BTC. Mid-April and late-June attempts by the market to break through this level were failed. Potential losses could happen if bulls are unable to raise the price, particularly if miners start selling off their holdings.
The spike in BTC prices over the past week has led to a minor increase in the profitability of bitcoin mining as indicated by hash price. According to HashrateIndex, it is currently $0.076 TH/s (terahashes per second) each day.
Despite Bitcoin’s price rising by over 88% so far this year, miners still have difficulties. Since July of the previous year, profitability has decreased by more than 30%, and since the apex of the 2021 bull market, profitability has decreased by more than 80%.
For Bitcoin miners, the combination of peak difficulty levels and near-record hash rates of 377 EH/s (exahashes per second) provides a continual uphill battle. The economics of mining has been under pressure from increasing hash rates, difficulty, and energy costs, which may force the sale of Bitcoin that has been produced to pay expenses.