Bitcoin miners have been increasingly sending a significant portion of their daily earnings to centralized cryptocurrency exchanges, reaching as high as 315%. This indicates that miners are actively selling their mined Bitcoin holdings.
This behavior has been observed throughout the primary bull market 2021, with miners taking advantage of profit opportunities through large spikes in inflows. Conversely, during late 2022, there was a significant inflow to exchanges, coinciding with a market bottom and resulting in capitulation.
Notably, Glassnode reported that Bitcoin miners sent a record-breaking $128 million to exchanges over the past week. Despite this substantial influx, the price of Bitcoin has yet to react significantly to this development. It is worth mentioning that miners typically send their Bitcoin to exchanges to convert it into cash, covering their profits and mining expenses.
Glassnode’s data reveals that Bitcoin miners have been reporting increased revenue and have earned a staggering $49.9 million in transaction fees since January. Moreover, they have generated a total of 1,761 Bitcoins in transaction fees from inscription transactions, which accounts for 22% of their total revenue.
The past week proved to be fruitful for miners, especially with Bitcoin reaching its 52-week high of $31,185 on June 24. However, the price of Bitcoin continues to hover above the $30,000 threshold, with strong resistance currently near the $31,000 mark.
This resistance level posed challenges for the market in mid-April and is now proving difficult to overcome in June. If bulls fail to break this resistance, future losses are expected, particularly if miners commence liquidation.