Glassnode Reports Bitcoin Miners Deliver Record $128M Earnings to Crypto Exchanges
The recent report by on-chain analytics firm Glassnode acknowledged that bitcoin miners delivered over 315% of daily earnings to exchanges.
The Monday, June 27 tweet by the on-chain analytics platform observed that the bitcoin prices had shown little movement despite miners sending a record $128 million in revenue to the centralized exchanges.
Extreme Interactions Observable as Miners Send Record Weekly Earnings
The analytics platform observed extremely high exchange interactions traced by the miners. Glassnode reported that a record $128 million in revenue realized by miners was destined for the centralized crypto exchanges. The figures translate to 315% of the daily earnings of Bitcoin miners.
Glassnode report acknowledges the existence of several spikes of bitcoin miner revenue transferred to the centralized exchanges. The spikes were noticeable during the bullish period of 2021, earning the miners huge profits. The segment would suffer declining inflow towards late 2022 when the markets suffered the cycle floor during the prolonged crypto winter.
Spike in Bitcoin Price Enticing Miners to Reap Profits by Selling Bitcoins
The analytics platform admits that the recent spike has eclipsed previous sessions by earning Bitcoin miners a healthy margin. The report demonstrates that miners send their Bitcoin profits to the exchanges to secure coverage for expenses and reap profit. Glassnode attributes the miner’s decision to send record revenue coincides with the recent Bitcoin rally that, on Saturday, June 24, tested $31185.
CryptoQuant chief executive Ki Young Ju supported Glassnode’s observation by noting that the higher price-to-earnings ratio presented an attractive price that became inevitable for miners to sell. He added that Bitcoin prices had shown little signs of suffering from the influx of tokens offered by miners. On the contrary, the digital asset is trading in a range above the $30000 level.
Bitcoin Hits Resistance Level Around $31000
CryptoQuant’s Ju observes that the $31000 price zone is emerging at a critical resistance level for Bitcoin. While the leading crypto asset by market capitalization edged closer in mid-April to the level, late June performances show the BTC is still hundreds away. Bitcoin had earlier in the day traded at $30016.55 before rallying to reach a daily high of $30458.59 per CoinGecko.
Glassnode report projected that failure by the bulls to break new ground would plunge the asset into losses, mainly when miners sustain the liquidation. The analytics firm notes that the bitcoin hash price recovered in the past week yielding mining profitability as the price rose. HashrateIndex approximates the mining profitability at $0.076 terahashes per second (TH/s).
Tough Challenges Forcing Miners to Sell Mined Bitcoins
Glassnode decries that miners face tough challenges while Bitcoin’s price has registered 88% year-to-date growth. They lament that profitability plunged by 30% since July 2022 and is currently 80% below its peak realized during the 2021 bull market.
Glassnode restates that bitcoin miners continue to confront uphill battles, particularly with the inclusion of record hash rates estimated at 377 EH/s amidst peak difficulties. The report points out that higher energy prices and hash rates impose downward pressure that erodes mining profitability. It implies that disposing of the hard-earned bitcoin, as witnessed last week, could prove an unpleasant necessity for the miners to cover expenses.
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