Bitcoin (BTC) has experienced a 4.5% decline in the past week, reaching a monthly low of $65,000. This drop in the value of the cryptocurrency has been attributed to a rise in selling activity from mining entities. According to the latest CryptoQuant weekly report, there has been a significant increase in the number of BTC sent from Bitcoin mining entities to exchanges, reaching a two-month high. This surge in selling comes as miners face decreasing revenues due to lower transaction fees.
On June 9th, there was a spike in the hourly transfer of BTC from the btc.com mining pool to the crypto exchange Binance, with more than 3,000 BTC being sent. The following day, miners sold over 1,200 BTC through over-the-counter desks, marking the highest daily volume since late March. Major Bitcoin mining companies like Marathon Digital in the U.S. have also ramped up their selling activity, with 1,400 BTC sold in June alone. This represents a significant increase from the 390 BTC sold in May.
The surge in selling activity from Bitcoin miners comes at a time when their revenues are dwindling following the halving. Daily miner revenues have dropped to around $35 million, a 55% decrease from the peak of $78 million in March. Daily Bitcoin transaction fees have also decreased significantly, with median transaction fees currently hovering around 65, down from 117 before the halving.
Despite the decrease in revenues, the Bitcoin network’s hashrate remains high, only dropping by 4% since the halving in April. This high hashrate puts additional pressure on miners as they require more computing power, energy, and time to verify transactions and add blocks to the chain. The current hashrate stands at 599EH/s, slightly lower than the pre-halving rate of 622EH/s. Miners are now competing for lower block rewards in terms of BTC under high pressure.
CryptoQuant analysts suggest that a period of low miner revenues and high hashrate could indicate price bottoms for Bitcoin. It is uncertain how far BTC will drop before the market sees a resurgence. As miners continue to grapple with reduced revenues and high selling pressure, the future fluctuations in Bitcoin’s price remain uncertain.
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