Bitcoin miners have increased BTC selling amid the largest migration of mining hardware in history. As a result, Bitcoin mining hash-power also saw a sharp drop during the last few weeks. According to the recent on-chain weekly analysis report published by Glassnode, two key factors are driving the recent jump in selling pressure from Bitcoin miners: a dramatic decline in mining revenue and a sharp increase in logistic expenses incurred by Bitcoin miners in relocation.
The average mining revenue currently stands at around $20.73 million per day.
According to the Glassnode report, the mining market has seen a decline of approximately 65% in revenues compared to the levels in April 2021. The average mining revenue currently stands at around $20.73 million per day. “Over this same period, mining difficulty has only increased by only 23.6%. The mismatch between revenue and difficulty is primarily a result of the global shortage in semi-conductors that has limited the ability of miners to expand their operations,” Glassnode mentioned in its report.
Glassnode highlighted a substantial decrease in institutional demand for Bitcoin.
In the latest report, Glassnode also mentioned that there has been a substantial decrease in institutional demand for Bitcoin. As a result, BTC-related investment products saw significant outflows in the last few weeks. For example, during the first week of June 2021, Bitcoin investment products saw outflows worth $141 million, the highest weekly level on record. According to the report, the primary driver for Bitcoin price appreciation in 2020 and 2021 was both the narrative and the reality of institutional demand. At the time of writing, bitcoin is trading just above the $35,000 mark.