tl;dr
The crypto market has experienced a sharp downturn due to broader economic concerns, leading to increased selling pressure from miners. Miner-to-exchange transfers have risen significantly during Bitcoin's decline, indicating heightened selling pressure to cover operational costs. The report suggest...
MINERS OFFLOAD BTC TO COVER COSTS - CERTAIN RIGS STILL PROFITABLE DESPITE PRICE DROP
The crypto market has experienced a sharp downturn due to broader economic concerns, leading to increased selling pressure from miners. Miner-to-exchange transfers have risen significantly during Bitcoin's decline, indicating heightened selling pressure to cover operational costs. The report suggests that continued selling pressure from miners could hinder Bitcoin's price recovery unless met with strong buyer demand.
Although overall miner selling has increased, some miners using newer, more efficient rigs are still profitable. Despite a drop in Bitcoin's price, the latest-generation mining machines remain profitable, with certain models already generating more than 20% of their cost. Additionally, some miners with newer models may benefit from further short-term price declines if weaker machines unplug, reducing mining difficulty.
According to CryptoQuant’s latest report, there has been a significant rise in miner-to-exchange transfers when Bitcoin briefly dropped to $77,000 on Monday, which indicated heightened selling pressure.
Bitcoin mining difficulty has increased by 3% in the past two weeks, while Bitcoin’s price has dropped more than 11%, which briefly pushed its hash price to $0.045/Th/Day – its lowest level since November. Despite these headwinds, the latest-generation mining machines remain profitable, even those with energy efficiencies above 20 W/T, such as the S19K Pro and S19 XP.
With daily net profits of $5-$6, Blockware estimated that these miners are on track for a 35% APY and a full return on investment by Q2 2027.
Market participants are closely watching whether demand will counterbalance the increased miner offloading. While overall miner selling has increased, it doesn’t necessarily mean all miners are struggling. Some miners – especially those using newer, more efficient rigs – are still making solid profits.