The price of Bitcoin (BTC) has taken a significant hit, falling 4.5% in the past seven days and reaching a monthly low of $65,000. According to a recent report from CryptoQuant, the sudden decline in the digital asset’s value can be linked to increased selling from mining entities.
The report reveals that the number of BTC sent from mining entities to exchanges has reached a two-month high, with a significant increase in selling activity from major mining companies. The U.S.-based Marathon Digital, for example, has offloaded 1,400 BTC so far in June, representing 8% of its total holdings.
The increased selling from miners comes as revenues remain low following the halving event in April. Daily miner revenues have plummeted to approximately $35 million, a 55% drop from the $78 million peak reached in March. The decline in revenues is attributed to a significant drop in daily transaction fees, which now hover around 65, down from 117 before the halving.
The high hashrate, which measures the processing power of the Bitcoin network, has also put additional pressure on miners. The hashrate has only fallen by 4% since the halving, indicating that miners are still competing for lower block rewards in terms of BTC. This has led to underpayment or extreme underpayment for miners.
CryptoQuant analysts believe that a period with low miner revenues and high hashrate indicates price bottoms. However, it remains to be seen how low BTC can go before the market rallies again. As the market continues to navigate this uncertain period, investors and traders will be closely monitoring the price action and market sentiment to determine the next move.
BitminerFactory is brought to life by Darrell Houghton, our astute publisher. With a deep-rooted passion for crypto and crypto mining spanning many years, Darrell’s unwavering enthusiasm fuels his daily quest for knowledge. He is eager to share the pivotal news stories of the day while also providing his own analysis and commentary with Bitminer Factory’s readers.
Source: CryptoPotato
