Analysis Firm Uncovers Truth: Bitcoin Miners Begin Moving BTC to Exchanges
According to analysts at CryptoQuant, Bitcoin miners have started transferring large amounts of BTC to exchanges, indicating a shift in the market. The data suggests that miners are selling off their holdings as Bitcoin struggles to maintain its value above $70,000.
HC Wainwright analyst Mike Colonnese noted that miners were previously competing for 900 BTC per day, but that number has now dropped to 450 BTC per day. This 45% decrease in mining activity post-halving has led to a decrease in overall mining revenue, prompting miners to offload some of their BTC holdings.
On June 9, CryptoQuant data showed that hourly BTC transfers from miners to exchanges exceeded 3,000 Bitcoins, with an additional 1,200 BTC being sold over-the-counter the following day. This influx of BTC sales coincided with a drop in Bitcoin’s price to around $66,000 on June 13.
Despite record transaction volumes on the Bitcoin network, daily miner revenues have dropped significantly since the halving in April. The total daily transaction fees on the network have decreased by over 44%, putting pressure on miners’ profitability.
Colonnese highlighted that publicly traded mining companies like CleanSpark and Iren (formerly Iris Energy) are still performing well post-halving. These companies are estimated to have a gross margin of over 50% on $70,000 worth of BTC, with a cash cost of producing one Bitcoin averaging $45,000.
While CleanSpark saw a 19% decline in the last quarter, Iren experienced a significant increase of over 140% in value. Both companies have shown strong growth throughout the year.
It is important to note that this information is not investment advice. For those interested in investing in cryptocurrencies, Binance exchange offers a 20% commission discount for new registrations. Stay updated with the latest news and data by following our Telegram and Twitter accounts.