Bitcoin on-chain data shows miners offloading BTC as revenues shrink
2 min read
Bitcoin’s on-chain data provides evidence that Bitcoin miners are offloading their holdings. The factors influencing the selling pressure could be reduced earnings from a cooldown in Ordinals activity as well as mining difficulty and hash rate reaching an all-time high.
According to on-chain analytics firm Glassnode, “Miners have been sending a significant amount of coins to exchanges.”
Glassnode data shows Bitcoin (
Identifying miners’ stress levels
Currently, the cost of producing Bitcoin for the existing mining hardware lies between $35,532 and $21,244. With Bitcoin’s price holding above $25,000, the downtrend in Bitcoin’s mining hash rate could be limited.
However, if the situation worsens over the summer and the mining cost increases without a proportionate increase in the BTC price, the industry could fall back into capitulation mode, marked by accelerated BTC selling and a reduced network hash rate.
Moreover, while Bitcoin’s hash rate has continued to rise, Bitcoin’s hash price metric — the market value assigned per unit of hashing power — declined significantly in May, suggesting a cooldown in demand for mining hardware.
According to an update from Hashrate Index, the “hashprice [PH] is back below $70.00/PH/day for the first time since mid-March” after touching an average of $82.23 per PH per day in May, a 14.8% decline.
It remains to be seen how far the sell-off extends and whether or not Bitcoin Ordinals activity comes back in the meantime.
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