Bitcoin (BTC) Miners Shifted 23,000 BTC to Exchanges by June 24

Bitcoin (BTC) miners moved more coins to exchange wallets in June 2022 as mining revenue fell and network difficulty climbed, a combination that pointed to growing pressure on miners.

Hashprice, which estimates miners’ daily revenue for each terahash of computing power, fell to $0.09. It had been slightly above $0.40 in October 2020. The June reading was the lowest since that month, and hashprice was down 60% from a year earlier, its steepest annual decline since March 2020.

Mining difficulty rose 51% year over year as Bitcoin’s price fell 39% over the same period. Transfers to exchanges increased as the price moved from $30,000 to $20,000. By June 24, miner-to-exchange flows for the month had reached roughly 23,000 BTC, the highest monthly reading since May 2021.

In a single day, some participants in the Poolin mining pool sent 5,000 BTC, valued at about $110 million, to Binance. The movements may indicate that some miners were unable to meet break-even costs and needed to convert Bitcoin into cash for expenses or debt.

The increase in transfers during the price decline may signal a miner capitulation phase, when miners send more Bitcoin than usual to exchanges. Similar selling patterns preceded market bottoms in earlier cycles.