Bitcoin Miners Are Selling, Will High Liquidity Derail BTC To ATH Push?

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As a researcher, I’ve been closely monitoring the Bitcoin mining scene and the recent trend is alarming. The cost of producing Bitcoin has significantly increased since the halving event in April, making it unprofitable for many miners to continue operations. This is evident from the surge in mining pool transfers and OTC desk sales.

As a crypto investor, I’ve noticed that Bitcoin (BTC) mining has become increasingly challenging due to rising production costs. Consequently, some miners are forced to sell their bitcoin stashes to offset these expenses.

Bitcoin Miner Revenue Slump: the Post-Halving Drawdown

Recently, the blockchain analysis firm CryptoQuant reported an increase in mining pool transactions, alongside a spike in Over-the-counter (OTC) deals.

#Bitcoin miners are under pressure and they’ve begun selling.

As a crypto investor, I’ve noticed some intriguing trends lately that merit closer examination. The increase in mining pool transfers is one such trend. These transfers could signify miners selling off their newly mined coins en masse, which might be indicative of a bearish sentiment or an attempt to raise funds for expansion.

— CryptoQuant.com (@cryptoquant_com) June 13, 2024

Expert insight from renowned crypto analyst Ali Martinez: The ongoing market situation for X is reminiscent of the aftermath of Bitcoin’s halving event in April, according to his analysis. Specifically, Martinez mentioned that the cost to mine a single Bitcoin has surged substantially post-halving. At present, the average mining expense for Bitcoin amounts to approximately $77,000 per coin.

“The significant increase in costs over the past month has caused many #BTC miners to give up, as reported by Ali Charts.”

Bitcoin miners have increased their selling pace as the cryptocurrency’s value oscillates between $69,000 and $71,000. Currently, Bitcoin is priced at $66,618.03 on the market, representing a 4.39% decrease in the last 24 hours. Not long ago, there was a significant rise in transfers from mining pools to Binance, reaching a two-month high of over 3,000 BTC. This trend coincides with Bitcoin’s recent price correction that brought it down to $66,000.

The scenario is consistent on Over-the-Counter (OTC) markets, as substantial Bitcoin sales were also recorded on the platform on Monday. Miners sold 1,200 Bitcoins via OTC desks on that day, representing the highest daily volume in more than two months. Multiple US Bitcoin firms have been actively liquidating their Bitcoin reserves.

As a crypto investor following Marathon Digital Holdings’ moves closely, I’ve noticed that they’ve sold a significant amount of their Bitcoin holdings within the first two weeks of June. Specifically, they offloaded approximately 1,400 Bitcoins, which is quite a jump from the 390 units they sold in May. This represents around 8% of their total Bitcoin holdings.

Low Mining Revenue Triggers Selling Pressure 

Mining income for cryptocurrency miners took a turn for the worse following Bitcoin’s halving event, leading to increased selling. In March, as Bitcoin reached its current record high (ATH), miner earnings stood at a robust $78 million. However, in recent times, these earnings have seen a significant decrease of around 55%, resulting in a current value of approximately $35,000. This noticeable dip in miner revenues is contributing to the heightened selling activity.

As a Bitcoin market analyst, I’d like to point out that transaction fees for Bitcoin have seen a significant decrease. They have dropped from approximately 117 Bitcoins earlier, down to roughly 65 Bitcoins as of now.

Several predictions suggest that Bitcoin’s value could hit $100,000 before June ends. However, there’s a strong possibility of downward pressure from sellers influencing the price in the near term. Over time, though, the market should even out as more liquidity becomes available.

If the demand from Bitcoin ETF issuers continues strongly, Bitcoin’s price could be on the verge of a bull rally at this stage.

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2024-06-13 20:10