Bitcoin Miners Send Record $128M in Revenue to Exchanges

Bitcoin (BTC) miners are sending record amounts of BTC to centralized crypto exchanges.

on June 27 doOn-chain analytics platform Glassnode reported the highest ever level of bitcoin miner revenue sent to exchanges.

It added that there is currently “extremely high exchange interaction” from bitcoin miners, who sent a record $128 million to exchanges during the past week. The analytics platform reported that this equates to 315% of their daily revenue.

During the bull run in 2021, there has been a multiple increase in the revenue of the miners sent to the exchanges as they make profits. Surrender flows also occurred in late 2022 as the market reached its cycle low.

However, this latest spike dwarfs all of them by a considerable margin.

Typically, when miners send BTC profits to exchanges they do so in preparation for cash withdrawals to cover their expenses and take profits.

Last week would be a good time to do so as BTC touched its year-to-date high of $31,185 on June 24.

At that time, Ki Young Joo, co-founder and CEO of CryptoQuant, resounding Sentiment suggests that the current price-to-earnings ratio was at an “attractive price for miners to sell”.

However, bitcoin price remains unaffected as the asset remains slightly above the $30,000 range at the time of publication.

Nevertheless, the current $31,000 price area is a key resistance level for BTC, which the market failed to break in mid-April and again in late June. If the bulls fail to break new ground, further losses are expected, especially if miners liquidation begins.

Bitcoin mining profitability, or hash value, has increased slightly over the past week due to the rise in BTC prices. It is currently $0.076 TH/s (terahashes per second) per day, according to hashrate index,

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Despite bitcoin’s price rising more than 88% year-to-date, miners still face some tough challenges. Profitability has declined by more than 30% since July last year and by more than 80% since the peak of the 2021 bull market.

Combined with the near-record hash rate of 377 EH/s and the extreme difficulty level, bitcoin miners still face an uphill battle.

Rising hash rates and difficulty, as well as higher energy prices, have put pressure on mining profitability. This means that selling your hard-earned bitcoin to cover expenses could prove to be an unpleasant necessity.

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