As an experienced cryptocurrency analyst, I have closely monitored the Bitcoin (BTC) market for several years. The recent 4.5% decline in Bitcoin’s value within the past seven days, reaching a monthly low of $65,000, has piqued my interest. This drop could be linked to increased selling from mining entities.
Over the last week, Bitcoin (BTC) experienced a decline of 4.5%, reaching a monthly minimum at $65,000. This downward trend might be attributed to heightened selling activity from mining operations.
As a researcher studying the latest trends in the cryptocurrency market, I’ve come across an intriguing finding from CryptoQuant’s weekly report. The number of Bitcoins transferred from mining entities to exchanges has surged to a two-month peak. This uptick comes as these mining entities experience a decline in their revenues, primarily due to the decrease in transaction fees.
Miner Selling Hits Two-Month High
On June 9th, a record-breaking amount of around 3,000 Bitcoins were transferred hourly from the btc.com mining pool to Binance exchange in a two-month period. The following day saw miners sell over 1,200 BTC through OTC desks, marking their highest daily sales volume since late March when they sold approximately 1,600 BTC.
As a researcher studying Bitcoin mining companies’ selling activities, I’ve noticed an uptick in offloading bitcoins by large entities. For instance, Marathon Digital, based in the United States, has sold 1,400 BTC in June alone. This represents approximately 8% of their total holdings, marking a significant jump from the 390 BTC they sold in May.
As a crypto investor, I’ve noticed that Bitcoin miners have been selling more coins recently. This trend comes amidst low revenue generation for miners following the halving event. To be specific, daily miner revenues have dropped to around $35 million, representing a significant decrease of about 55% from the peak of $78 million reached back in March.
The daily Bitcoin transaction fees currently average approximately 65 dollars, marking a significant decrease from the previous 117 dollars before the halving event. Simultaneously, the median transaction fees have remained relatively low in US currency despite the recent surge in transaction volume on the network.
Miners Face High Hashrate
As a Bitcoin network analyst, I’ve observed an intriguing trend. Despite miners ramping up their sell-offs due to decreased revenues, the network’s hashrate has remained remarkably resilient. The hashrate has dipped by a mere 4% since the halving event in April. This unexpected stability puts added pressure on miners, as they face increased competition and reduced profits.
Mining with a high hashrate requires greater computational power, energy consumption, and longer duration for validating transactions and appending blocks to the blockchain. This situation also implies that miners are currently receiving inadequate or significantly insufficient compensation for their efforts. However, it’s important to note that they were adequately compensated at the time of writing.
At present, Bitcoin’s hashrate is approximately 599 exahashes per second (EH/s), a slight decrease from the pre-halving level of 622 EH/s. Miners are now contending with reduced Bitcoin rewards for each block they mine under significant competition.
Analysts at CryptoQuant have observed that extended periods of low miner revenue coupled with high hash rates tend to signal Bitcoin price bottoms. However, it is yet to be determined just how low the Bitcoin price will dip before another market rally ensues.
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2024-06-16 15:18