Bitcoin Miners Are Selling, Will High Liquidity Hinder BTC’s Progress?
Bitcoin (BTC) miners are facing intense pressure due to rising production costs, and many are now selling their BTC holdings.
Decline in Bitcoin Miners’ Income: Post-Halving Decline
Blockchain analysis platform CryptoQuant recently detected a significant increase in mining pool transfers. This is in addition to an increase in over-the-counter (OTC) desk sales.
Ali Martinez, a leading crypto analyst at X, attributed the current market outlook to the Bitcoin halving event that took place in April. Ali noted that immediately after the halving, the cost of mining the leading cryptocurrency increased significantly. Currently mining a single BTC costs an average of $77,000.
“This increase in spending led to a wave of capitulation among #BTC miners last month,” Ali Charts said.
These Bitcoin miners increased their sales as the Bitcoin price fluctuated between $69,000 and $71,000. At the time of writing, BTC was trading at $66,618.03, down 4.39% in the last 24 hours. A few days ago, transfers from mining pools to Binance surged to the point where it hit a 2-month high of over 3,000 BTC. This change is in line with the price correction that sent Bitcoin down to $66,000.
The situation is the same on OTC desks, there was an increase in sales on the platform as well. On Monday, miners sold 1,200 Bitcoins via OTC desks, recording the highest daily volume in more than two months. Many Bitcoin companies in the United States are busy offloading their Bitcoin holdings.
just two weeks into June, Marathon Digital Holdings Inc has distributed 1,400 Bitcoins, compared to May when it sold only 390. The sales represent 8% of Bitcoin assets.
Low Mining Revenue Triggers Selling Pressure
Miners are selling due to the negative return mining revenue receives after the halving. In March, when Bitcoin hit its current all-time high (ATH), miners’ revenue was $78 million. Today, this value has fallen by approximately 55% to $35,000. This decline in miners’ income fuels sales activity.
It is worth noting that Bitcoin transaction fees have also dropped modestly from 117 Bitcoins before April 18 to around 65 Bitcoins.
There are various expectations that Bitcoin could reach $100,000 by the end of June, but selling pressure could negatively affect the price in the short term. Over time, the market is expected to stabilize with greater liquidity.
At this point, BTC could be headed for a bull run if demand from spot Bitcoin ETF issuers remains intact.
Read More: FINMA Orders Closure of Crypto Bank FlowBank, Begins Liquidation
✓ Share:
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations to ensure mainstream acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. follow him excitementLinkedIn
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Bitcoin #Miners #Selling #High #Liquidity #Hinder #BTCs #Progress
