Bitcoin Miners Earn Record $128M for Crypto Exchanges, According to Glassnode Reports

According to Glassnode, an on-chain analytics startup, over 315 percent of daily Bitcoin mining profits are sent to exchanges.

Bitcoin values have not changed, according to a tweet from an on-chain analytics company on June 27th, despite miners sending a record $128 million in revenue to the centralized exchanges.

Miners report weekly earnings records, allowing for the observation of extreme interactions.

The analytics system saw a lot of exchange traces from the miners. According to Glassnode, a whopping $128 million of miners' earnings were destined for the centralized cryptocurrency exchanges. These numbers are equivalent to 315 percent of what Bitcoin miners make in a typical day.

The Glassnode analysis confirms that there have been multiple surges in the amount of money mined bitcoins are selling for on centralized exchanges. During the 2021 bull market, the surges were noticeable, and the miners made a fortune. Late in 2022, as the markets hit the cycle floor during the protracted crypto winter, the segment would see a decline in incoming funds.

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The increase in Bitcoin's value has encouraged miners to cash out and sell their coins.

According to the analytics service, the recent surge has brought in more money for Bitcoin miners than any previous session. The analysis shows that miners funnel their Bitcoin earnings into exchanges for insurance against losses and profit. Coincident with the latest Bitcoin surge that, on Saturday, June 24, touched $31185 (according to Glassnode), the miner decided to send in record revenue.

Ki Young Ju, CEO of CryptoQuant, supported Glassnode's findings by claiming that the higher price-to-earnings ratio offered an alluring price that miners eventually sold. He continued by saying that the increased supply of tokens provided by miners has had little effect on Bitcoin's pricing. Instead, the value of the digital asset is fluctuating above $300,000.

At about $31,000, Bitcoin Meets Strong Resistance

According to Ju of CryptoQuant, the $31,000 price zone has emerged as a key resistance level for Bitcoin. Midway through April, the leading crypto asset by market cap came closer to the level, but as of late June, performance indicators reveal that the BTC is still hundreds of dollars away. According to CoinGecko, Bitcoin's daily high price was $30458.59, up from an earlier high of $30016.55.

If the bulls don't make new highs, according to the Glassnode report, the asset will tank, especially if the miners have to keep liquidating. According to the data analysis organization, mining became profitable again as the price of a bitcoin's hash climbed during the past week. HashrateIndex estimates mining profitability to be $0.076 per terahash per second (TH/s).

Difficult Conditions Drive Bitcoin Miners to Liquidate Their Holdings

Glassnode complains that mining is difficult and that the price of Bitcoin is up 88% so far this year. They are upset because profits have dropped 30% since July 2022 and are now 80% below their 2021 bull market high point.

With record hash rates estimated at 377 EH/s during peak difficulties, Glassnode reiterates that bitcoin miners continue to face challenging conditions. According to the data presented, declining mining profitability is a direct result of rising energy costs and hash rates. It suggests that selling the mined bitcoin to fund costs, as was seen last week, may turn out to be an unwelcome need for the miners.

The recent spike in miner revenue sent to exchanges is a sign of increased activity in the Bitcoin market. It is unclear what the long-term implications of this activity will be, but it is worth monitoring closely as it could signal a major price movement in Bitcoin.

Some possible implications of the spike in miner revenue sent to exchanges:

  • Miners may be selling their BTC holdings to cover operational costs or take profits.
  • Miners may be preparing to sell their BTC holdings if they believe that the price of Bitcoin is about to decline further.
  • Miners may be transferring their BTC holdings to exchanges to lend them out or participate in other DeFi activities.

Read More: Learn the ins and outs of cryptocurrency trading.

It is also worth noting that similar spikes in miner revenue have been seen in the past, often preceding major price movements in Bitcoin. For example, a large spike in miner revenue sent to exchanges occurred in late 2018, shortly before the price of Bitcoin bottomed out at $3,122.

Of course, it is impossible to say for sure what the implications of the current spike in miner revenue sent to exchanges will be. However, it is a sign of increased activity in the Bitcoin market and is worth monitoring closely.

 


DivineMercy

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Chidera Udekwe 48 w

Nice