Bitcoin’s value has taken a hit recently, dropping by 4.5% in just seven days to reach a monthly low of $65,000. Analysts are pointing to increased selling activity by mining entities as a possible cause for this decline.
According to the latest report from CryptoQuant, Bitcoin mining entities have been sending more BTC to exchanges in recent weeks. This selling activity hit a two-month high on June 9 when over 3,000 BTC were transferred from the btc.com mining pool to Binance. The following day, miners sold at least 1,200 BTC through over-the-counter desks, marking their highest daily volume since late March.
Major mining companies like Marathon Digital in the U.S. have also ramped up their selling. In June alone, Marathon Digital has sold 1,400 BTC, which represents 8% of its total holdings. This is a significant increase from the 390 BTC it sold in May.
The increase in selling from miners comes at a time when their revenues are dwindling. Daily miner revenues have dropped to around $35 million, down 55% from the peak of $78 million in March. This decline is largely due to lower transaction fees and the halving event that occurred recently.
Despite the drop in revenues, the Bitcoin network’s hashrate remains high. Miners are still expending a significant amount of computing power, energy, and time to verify transactions and add blocks to the blockchain. This has put pressure on miners who are now competing for lower block rewards.
Currently, Bitcoin’s hashrate stands at 599EH/s, slightly lower than the rate before the halving in April. CryptoQuant analysts suggest that periods of low miner revenues and high hashrates often indicate price bottoms in the market. It remains to be seen how low BTC will go before a market rally occurs.
In the meantime, investors can take advantage of special offers from exchanges like Binance and BYDFi. Binance is offering a $600 exclusive welcome offer for new users, while BYDFi Exchange has a limited offer of up to $2,888 in welcome rewards. These offers could be a great opportunity for those looking to enter the crypto market.