Bitcoin Mining Entities Selling at a High Rate
Bitcoin (BTC) has experienced a 4.5% decrease in value over the past week, dropping to a monthly low of $65,000. This decline in the digital asset’s price could be attributed to an increase in selling activity from mining entities.
- Mining entities have witnessed a surge in sending BTC to exchanges, reaching a two-month high as per the latest CryptoQuant weekly report.
- On June 9, btc.com mining pool transferred more than 3,000 BTC to the Binance exchange, marking a two-month high
- Miners sold at least 1,200 BTC through over-the-counter desks the following day, recording the highest daily volume since late March.
Large Mining Companies Increase Selling
Major Bitcoin mining companies, such as Marathon Digital based in the U.S., have also intensified their selling activities. Marathon Digital has sold 1,400 BTC in June, representing 8% of its total holdings. This is a significant increase from the 390 BTC sold in May.
- Increased selling from miners has occurred amidst declining revenues following the halving event.
- Daily miner revenues have dropped to approximately $35 million, a 55% decrease from the peak of $78 million in March.
- Daily Bitcoin transaction fees have seen a substantial decrease, now hovering around 65 compared to 117 before the halving.
Challenges Faced by Miners
Despite the decrease in revenues, the Bitcoin network’s hashrate has remained high. This high hashrate, coupled with lower revenues, is putting added pressure on miners.
- Miners require more computing power, energy, and time to verify transactions and add blocks to the blockchain with a high hashrate.
- The current hashrate is at 599 EH/s, slightly lower than the pre-halving rate of 622 EH/s.
- Miners are now competing for reduced block rewards in terms of BTC amidst high pressure.
Analysts Predict Price Bottoms
Analysts at CryptoQuant suggest that a period of low miner revenues and high hashrate could indicate potential price bottoms for Bitcoin. The future performance of BTC remains uncertain as the market dynamics continue to evolve.
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