According to a tweet by Glassnode, an on-chain analytics platform, Bitcoin miners have been transferring unprecedented quantities of BTC to centralized cryptocurrency exchanges, reaching a new record in revenue on June 27.
Glassnode’s recent observations highlight an “extremely high exchange interaction” occurring among Bitcoin miners. In the past week, these miners have sent an unprecedented amount of $128 million to cryptocurrency exchanges, which is equivalent to 315% of their daily revenue. This surge in miner revenue being transferred to exchanges is reminiscent of similar occurrences during the 2021 bull run when miners capitalized on profits. Additionally, there was a significant influx of capitulation during late 2022 as the market reached its cycle bottom.
Despite Bitcoin’s notable year-to-date price increase of over 88%, miners are currently confronting significant challenges. Their profitability has declined by more than 30% since July of the previous year and has plummeted by over 80% since the peak of the 2021 bull market.
Adding to the difficulties, Bitcoin miners are contending with nearly record-breaking hash rates, reaching 377 EH/s, and the highest levels of difficulty. These factors contribute to an arduous situation for miners.
The continuous rise in hash rates and difficulty, coupled with the surge in energy prices, has exerted downward pressure on mining profitability.