Bitcoin (BTC) miners are sending record amounts of Bitcoin to centralized cryptocurrency exchanges.
on June 27 tweetOn-chain analytics platform Glassnode reported that Bitcoin miner revenues sent to exchanges hit an all-time high.
It noted that there is currently “extremely high exchange interaction” among bitcoin miners, sending a record $128 million to exchanges in the past week. This amounts to 315% of their daily earnings, the analytics platform noted.
During the 2021 bull run, there have been several surges in revenue flowing into exchanges as miners took profits. There is also capitulation inflows in late 2022 as markets hit cycle bottoms.
However, the recent surge has dwarfed them by a considerable gap.
Typically, when miners send bitcoin profits to exchanges, they do so in preparation for cashing out to pay fees and take profits.
This past week will be a good time to do so, as BTC hit its highest price so far this year, touching $31,185 on June 24.
Ki Young Ju, Co-Founder and CEO of CryptoQuant at the time echo The sentiment says the current price-to-earnings ratio “is an attractive selling price for miners.”
However, Bitcoin price has not been affected as the asset is still slightly above the $30,000 threshold as of publication time.
Nonetheless, the current price region of $31,000 is a major resistance level for BTC, and the market failed to break above this level again in mid-April and late June. If the bulls are unable to break through the new ground, expect future losses, especially if miners start to liquidate.
Bitcoin mining profitability, or hashrate, rose slightly over the last week as the price of Bitcoin rose. According to reports, the current daily price is 0.076 TH/s (terahash). Computing power index.
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Despite the bitcoin price rising more than 88 percent this year, miners still face some serious challenges. Profitability has fallen by more than 30% since last July and by more than 80% since the peak of the 2021 bull market.
Combined with a near-record 377 EH/s hash rate and the highest difficulty level, Bitcoin miners still face an uphill battle.
Increases in hash rate and difficulty, combined with rising energy prices, have put downward pressure on mining profitability. This means that selling your hard-earned bitcoins may prove to be an unpleasant necessity to cover expenses.
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