Bitcoin miners send around 315% of their daily revenues to centralized crypto exchanges.
The global Bitcoin mining community's engagement with centralized crypto exchanges is at an all-time high.
On June 27th, the on-chain analytics platform Glassnode shared a tweet pointing out the “extremely high exchange interaction” from Bitcoin miners. In particular, the company reported that, during the past week, Bitcoin miners moved $128 million to crypto exchanges.
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This record transfer amount represents 315% of the miners' daily revenue.
During the 2021 bull run and the market's bottom in late 2022, spikes in miner revenue sent to crypto exchanges were observed as part of profit-taking strategies. However, this recent surge outpaces those significantly.
Typically, miners transferring BTC profits to crypto exchanges is a signal of cashing out to cover expenses and take profits. Considering that Bitcoin recently hit its highest price for the year at $31,185 on June 23rd, this would indeed have been a perfect time for miners to sell.
CryptoQuant co-founder and CEO Ki Young Ju stated that the current price-to-earnings ratio made it an “attractive price for miners to sell.”
Despite this significant transfer, Bitcoin prices are yet to show any adverse effects, with the cryptocurrency hovering slightly above the $30,000 mark at the time of reporting.
However, the $31,000 price zone poses a significant resistance level for Bitcoin, with the market failing to break past this point in both mid-April and late June. Future losses could be expected if the bulls fail to conquer this level, particularly if miners start liquidating their holdings.
With the recent rise in BTC prices, Bitcoin mining profitability has increased slightly, currently standing at $0.076 TH/s (terahashes per second) per day, according to HashrateIndex.
The Bitcoin mining community's record-breaking engagement with centralized crypto exchanges is a significant event. While it has not yet impacted Bitcoin prices, this high exchange interaction could shape the market's future direction, particularly if miners begin to liquidate their Bitcoin holdings.
In other Bitcoin mining news, a leading global Bitcoin mining firm, Riot Platforms, has acquired 33,280 "next-generation" Bitcoin miners for its Texas facility.
