Analysis Firm Uncovers the Truth: “Bitcoin Miners Begin Shifting BTC to Exchanges”
Bitcoin miners are selling off their BTC holdings as the price of Bitcoin struggles to maintain the $70,000 level. Recent data from CryptoQuant reveals that Bitcoin flows from miners’ wallets to exchanges reached their highest point in two months last weekend, signaling a sell-off.
HC Wainwright analyst Mike Colonnese commented, “Less than two months ago, miners were competing for 900 BTC per day, but now they are only competing for 450 BTC per day across the network. The mining economy has experienced a 45% downturn from pre-halving levels, so it’s not surprising to see some miners liquidating their holdings.”
According to CryptoQuant, hourly Bitcoin transfers from miners to exchanges surpassed 3,000 Bitcoins on June 9. The following day, miners sold 1,200 BTC in over-the-counter markets.
On June 13, the price of Bitcoin dropped to approximately $66,000 and has since struggled to surpass the $70,000 level, despite breaking its previous record high of $73,797.68 on March 14.
Julio Moreno, research manager at CryptoQuant, explained, “The sell-off is occurring amidst lower revenues following the halving.” He further added that daily BTC miner revenues are currently around $35 million, a 55% decline from the peak reached in March 2024.
Furthermore, the Bitcoin network’s total daily transaction fees have dropped by more than 44% compared to pre-halving levels. Despite the network experiencing record transaction volumes, the median transaction fee has remained low. The hash rate of the Bitcoin network has also remained relatively stable since the halving in April, indicating that the same amount of computing power is now competing for reduced block rewards, putting additional pressure on miners’ profitability.
Colonnese mentioned that major publicly traded miners are still performing well post-halving. He highlighted CleanSpark and Iren (formerly Iris Energy) as top-performing companies, estimating that they currently yield over a 50% gross margin on $70,000 worth of BTC, while their average cash cost for producing one Bitcoin is $45,000.
During this quarter, CleanSpark experienced a 19% decrease in stock value, whereas Iren saw an increase of over 140%. Overall, CleanSpark has gained 55% and Iren 82% throughout the year.
*Disclaimer: This article does not offer investment advice.