Glassnode’s recent report acknowledged the effect of miners sending a record $128 million in revenue to centralized exchanges, translating to 315% of their daily earnings. Despite Bitcoin prices rallying, analysed by Glassnode to have had “a strong bullish period” in 2021 resulting in hefty profits, the effects of what the firm has described as “numerous token inflows to exchanges” have been seen. Cryptocurrencies trading platform, CryptoQuant, revealed by their Chief Executive Ki Young Ju that miners got a higher reward as their P/E ratios provided “an attractive gaming for them to sell and gain coverage for operating expenses. Per CoinGecko, Bitcoin tried surpassing the $30000 level and trading above it’s previous – $30016.55 – towards the later quarter of June.
Glassnode further analyses how miners are facing immense challenges while the leading crypto by market cap achieved an 88% increase YTD. Unfortunately for the miners, their considerable profit has declined by 30% as of July 2022 and is currently 80% lower than it’s peak during the noted ‘bull market’. Furthermore, they point at the increasing difficulty of the network, attributed to higher hash rates going as high as 377 EH/s putting it in a critical point of resistance for bitcoin, and pressing downward on mining profitability. During the recording last week, right after the peak hash rate of 353 EH/s, miners had to face the agonising route of liquidating their mined bitcoins and proceeding with their usually moderately valued daily operators.