- When miners want to cover expenses and take profit, they send BTC to exchanges
- The current price zone of $31,000 is a major resistance level
- Mining profitability has declined by more than 30% since July last year
Bitcoin miners are sending record amounts of BTC to centralized crypto exchanges according to a June 27 tweet by analytics platform Glassnode, Cointelegraph reported. They have sent a record $128 million to centralized exchanges over the past week, which corresponds to 315% of their daily revenue.
This tendency has yet to impact Bitcoin prices.
Record spike in revenue sent to exchanges
There were a few spikes in revenue that miners sent to exchanges during the crypto market bull run in 2021. Inflow capitulated the following year as markets went into bear cycle. The most recent spike is the biggest ever.
Miners are preparing to cash out
When miners want to cover expenses and take profit, they tend to send their BTC to exchanges. BTC peaked at just over $31,000 on June 24, so it seems like a good time to cash out. The tendency has not impacted Bitcoin prices yet.
BTC faces major resistance level
The current price zone of $31,000 is a major resistance level for the flagship crypto. It has yet to be broken this year although it was close in April and June. Future losses are expected if bulls can't break new ground, particularly if miners start liquidating.
The hash price, or BTC’s mining profitability, has grown slightly over the past week because BTC’s price increased. According to HashrateIndex, it is currently $0.076 TH/s (terahashes per second) per day.
Bitcoin’s price has grown by almost 90% in the past year, but not all is smooth sailing for miners. Their profitability has declined by more than 30% since July last year, down over 80% since the all-time high in 2021.
An uphill battle
In combination with peak difficulty levels and almost record hash rates of 377 EH/s, Bitcoin miners are still facing major challenges. Increased difficulty due to the upcoming halving, higher energy costs, and increasing hash rates are exerting pressure on mining profitability.
Some miners may be compelled to sell their Bitcoin just to cover expenses. Others are preparing for the upcoming halving by fortifying their infrastructure.
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