Bitcoin (BTC) has experienced a 4.5% decline in the past week, reaching a monthly low of $65,000. This drop in value is believed to be attributed to the heightened selling activity from mining entities. According to analysts in the recent CryptoQuant weekly report, Bitcoin mining entities have been sending an increased number of BTC to exchanges, marking a two-month high in such transactions. This spike in selling comes as miners face reduced revenues due to lower transaction fees.
Major Bitcoin mining companies, including the U.S.-based Marathon Digital, have significantly increased their selling activities. Marathon Digital has already sold 1,400 BTC in June, accounting for 8% of its total holdings. This is a substantial increase from the 390 BTC it sold in May, indicating a growing trend of miners offloading their BTC in response to dwindling revenues post-halving.
The drop in daily miner revenues, down to about $35 million from a peak of $78 million in March, has led to a surge in BTC sales by miners. Despite the high number of transactions on the network, median transaction fees have remained low in USD terms. The Bitcoin network’s hashrate has stayed relatively high, only experiencing a 4% decrease since the halving in April. This has put additional pressure on miners as they compete for lower block rewards under high hashrate conditions.
CryptoQuant analysts suggest that a period of low miner revenues combined with a high hashrate may indicate price bottoms for Bitcoin. The current hashrate of 599EH/s, slightly lower than the pre-halving rate of 622 EH/s, reflects the intense competition among miners for diminishing block rewards. As miners navigate through this challenging phase, the market waits to see how low BTC can go before a potential rally ensues.