Bitcoin Miners Set Record With $128M Revenue Sent To Exchanges

Jun. 30, 2023
Bitcoin Miners Set Record With $128M Revenue Sent To Exchanges

Bitcoin miners are making headlines again as they send unprecedented BTC to centralized cryptocurrency exchanges. In a June 27 tweet, on-chain analytics platform Glassnode reported an all-time high in Bitcoin miner revenue sent to businesses.

This influx of funds represents a whopping 315% of their daily revenue. While this development would typically trigger price reactions in the market, Bitcoin’s value has remained relatively unaffected thus far.

Bitcoin miners have historically sent portions of their profits to exchanges to cover expenses and secure gains. During the 2021 bull run, businesses were regularly sent spikes in revenue as miners capitalized on surging prices. A significant inflow occurred during the market bottom cycle in late 2022.

However, the latest income spike eclipses all preceding cases by a vast percentage. Although Bitcoin reached its highest price of the year at $31,185 on June 24, the influx of revenue from miners has yet to impact the market significantly.

CryptoQuant co-founder and CEO Ki Young Ju suggested that the current price-to-earnings ratio presents an attractive opportunity for miners to sell their holdings. Despite this, Bitcoin is still trading above $30,000 at publication.

It’s worth noting that the $31,000 price zone serves as a crucial resistance level. It has previously resisted breakouts in mid-April and late June. Should miners initiate liquidations, the market may witness a new wave of selling pressure and potential losses.

Mining Profitability Challenges Persist

Bitcoin mining has become increasingly challenging for miners. This is amidst a price surge of over 88% since the beginning of the year. Despite the positive price trend, profitability has declined by more than 30% since July 2022 and over 80% since the peak of the 2021 bull market.

This decline in profitability is exacerbated by near-record hash rates of 377 EH/s and peak difficulty levels, creating an uphill battle for miners. Rising energy costs contribute to the downward pressure on profitability. This makes liquidating mined Bitcoin a necessary yet unwelcome step to cover expenses.

Bitcoin miners have shattered previous records by sending an astounding $128 million in revenue to centralized exchanges. While miners typically offload their profits to cover costs and secure gains, this surge in revenue surpasses all previous instances.

Despite the significant influx, Bitcoin’s price has remained relatively stable. However, the $31,000 price zone poses a critical resistance level, and if breached, it could trigger further market movements.

Related Reading | HSBC Hong Kong Enters Crypto Market With ETF Trading

Meanwhile, miners face profitability challenges due to increasing hash rates, difficulty levels, and rising energy costs. As they navigate these obstacles, selling their hard-earned Bitcoin becomes unavoidable.

Rida Fatima

News writer
An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.