Record-Breaking $128M Revenue for Bitcoin Miners Transferred to Exchanges

Record High of Bitcoin Miner Revenue Sent to Exchanges

Miners of Bitcoin (BTC) are transferring unprecedented quantities of BTC to centralized digital currency exchanges.

On June 27th, Glassnode, an on-chain analytics platform, tweeted that the amount of Bitcoin miner revenue sent to exchanges had reached a record high.

The analytics platform observed that there was presently an “extraordinarily high exchange interaction” from Bitcoin miners who had transferred a record $128 million to exchanges during the past week. This is equivalent to 315% of their daily income, they remarked.

There have been multiple increases in miner income sent to exchanges during the 2021 bull market as they cashed out their profits. Additionally, there was an influx of capitulation when the markets reached their lowest point in late 2022.

Nevertheless, this most recent surge has outdone them all by a considerable amount.

Typically, miners transfer BTC earnings to exchanges in order to prepare for cashing out to cover their costs and make a profit.

This week has been a great opportunity to act, as Bitcoin reached its highest price of the year to date on June 24, reaching $31,185.

At the time, Ki Young Ju, co-founder and CEO of CryptoQuant, shared the opinion that the present price-to-earnings ratio was an “alluring price for miners to offload.”

Despite the current situation, Bitcoin prices have yet to be impacted and still remain slightly above the $30,000 mark at the time of writing.

Despite this, the current $31,000 price zone is a major obstacle for BTC, as it was unable to break through it in mid-April and late June. If bulls are not able to make progress, potential losses are anticipated, particularly if miners begin cashing out.

The mining profitability of Bitcoin, also known as the hash rate, has seen a slight uptick over the past week due to the surge in BTC values. According to HashrateIndex, it is currently $0.076 TH/s (terahashes per second) per day.

Challenges Facing Bitcoin Miners

Riot Blockchain is planning to add 33,000 Bitcoin miners to its platforms before the 2024 halving.

Despite the substantial appreciation of Bitcoin over the course of the year, miners have been struggling with various issues. Profitability has decreased by over 30% since July 2020 and is down a whopping 80% since the peak of the 2021 bull run.

When coupled with the near-record hash rate of 377 EH/s and peak difficulty levels, miners of Bitcoin are still facing a challenging task.

The rise in hash rates and difficulty, in conjunction with higher energy costs, has caused a decrease in the profitability of mining. This could mean that miners will be forced to sell their acquired Bitcoin to cover expenses, which could be an undesirable outcome.

The magazine states that Bitcoin is heading towards the goal of achieving ‘Net Zero’.