Bitcoin’s Hidden Threat? Miner Revenue Sent To Exchanges Surges Over 300%

Samuel Edyme

1 year ago

3 mins read

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The world’s flagship crypto, Bitcoin (BTC), is showing some signs of tension. While external events frequently steer its course, the latest headwinds arise from within its mining community, as recent data suggests mounting selling pressure from Bitcoin miners.

Miles Deutscher, a seasoned crypto analyst, has been vocal about this emerging trend, casting light on what might be a significant underlying issue in the Bitcoin realm. Given the innate mechanics of Bitcoin, miners play a pivotal role not just in transaction verification but also in the coin’s overall market dynamics.

Selling Pressure Amplified By Miners

There’s currently an escalating concern in the Bitcoin community. Miners, the entities ensuring Bitcoin’s transactional integrity and security, appear to be offloading their holdings at an unprecedented rate.

Glassnode, renowned for its report on blockchain data analytics, has revealed that miner revenue sent to exchanges has skyrocketed, marking a new all-time high of 315%.

Bitcoin miner revenue sent to exchanges reaches all time high. — Bitcoin miner revenue sent to exchanges reaches an all-time high. | Source: Miles Deutscher

Such statistics beckon inquiries. Deutscher’s analysis points toward several factors that could be prompting this sell-off converging to produce this scenario. According to Deutscher, Bitcoin’s all-time high hash rates, peak mining difficulty levels, and escalating operational costs have squeezed miners.

One of #Bitcoin‘s biggest supply headwinds right now (that no one is taking about) is the increasing miner sell pressure.

ATH hash rates, peak difficulty + rapidly rising energy prices have combined to heavily affect mining profitability.

With rewards set to be cut in half via… pic.twitter.com/HlL2nuendj

— Miles Deutscher (@milesdeutscher) September 28, 2023

With the profitability of mining endeavors getting pinched and the next halving event looming on the horizon, it’s plausible that miners seek to liquidate their BTC holdings. Deutscher explained such sales are essential for these miners to maintain operational fluidity and ensure their ventures remain viable.

Implications For The Broader Bitcoin Market

With Bitcoin being decentralized, every actor, from individual hodlers to large-scale miners, plays a part in its market dynamics. As miners dispatch more BTC holdings to exchanges, they inadvertently ramp the selling pressure. If it persists, such a trend can exert a downward force on Bitcoin’s price.

However, it’s worth noting that this is just one piece of a vast jigsaw. While miners’ selling pressures are influential, other macro factors, such as approving a spot BTC Exchange Traded Fund (ETF), regulatory landscape, and market sentiment, will influence Bitcoin’s journey ahead.

Meanwhile, Bitcoin has seen a slight bullish trajectory of 2.2% over the past day. The asset currently trades for $26,828 at the time of writing, with a 24-hour trading volume of $11.2 billion and a market cap of $523.9 billion.

Bitcoin (BTC) price chart on TradingView — Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Featured image from Unsplash, Chart from TradingView

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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