Analysis Firm Uncovers the Truth: Bitcoin Miners Begin Transferring BTC to Exchanges
An analysis firm has uncovered that Bitcoin miners are starting to move significant amounts of BTC to exchanges. Here are the details.
Bitcoin miners are liquidating their holdings as BTC struggles to maintain the $70,000 mark. Data from CryptoQuant indicates that BTC transfers from miners’ wallets to exchanges hit a two-month high last weekend, signaling a sell-off.
“Less than two months ago, miners were competing for 900 BTC per day, but now that number has dropped to 450 BTC per day across the network,” stated HC Wainwright analyst Mike Colonnese. “The mining economy is down 45% from pre-halving levels, so it’s not surprising to see some selling pressure.”
CryptoQuant data reveals that hourly BTC transfers from miners to exchanges exceeded 3,000 Bitcoins on June 9. The following day, miners sold 1,200 BTC in over-the-counter markets.
On June 13, the price of Bitcoin dipped to approximately $66,000. Since achieving a record high of $73,797.68 on March 14, BTC has struggled to surpass the $70,000 threshold.
“The sell-off is occurring amidst lower revenues post-halving,” explained Julio Moreno, research manager at CryptoQuant. He noted that daily BTC miner revenues have dropped by 55% from their peak in March.
Despite record transaction levels on the Bitcoin network, total daily transaction fees are more than 44% lower than before the halving. The hash rate has remained stable since the halving, indicating increased pressure on miners’ profitability as computing power competes for diminishing block rewards.
Colonnese highlighted that major publicly traded miners are faring well post-halving. CleanSpark and Iren (formerly Iris Energy) are leading the pack, with estimated gross margins exceeding 50% on $70,000 worth of BTC.
While CleanSpark saw a 19% decrease this quarter, Iren experienced a remarkable 140% surge. Their year-to-date gains stand at 55% and 82%, respectively.
*This article does not constitute investment advice.
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