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Bitcoin Price- Bitcoin Miners Hold Tight Amid Harsh Market Conditions
Bitcoin Price– With Bitcoin [BTC] trading near $107,000, most short- and long-term holders remain comfortably in profit. However, Bitcoin miners are currently navigating one of their most challenging environments in over a decade.
Why Are Miner Profits at Historic Lows?
According to on-chain analyst Alphractal, there are three key factors behind the sharp decline in miner profitability:
- Transaction fees are at a 12-year low, the lowest since 2012. This is largely due to the reduced on-chain activity in the current cycle, which translates into lower revenue for miners.
- Hash Rate has dropped, but mining Difficulty hasn’t adjusted accordingly. This mismatch squeezes miner margins and suggests that many operations are powering down machines due to declining revenue.
- Hash Rate volatility is also high, which typically signals instability and miner exit. A downward difficulty adjustment is usually expected—but it hasn’t happened yet.
Miners Are Holding, Not Selling
Data from CryptoQuant shows that Miner Flow to Exchanges fell to a monthly low of 795.5 BTC as of June 29. This indicates that miners are holding onto their coins, even while facing low profitability.
Historically, miners tend to sell during bull runs or peak network activity. But this time, they are holding despite high BTC prices and weak demand on-chain.
Why? One reason: there’s no strong need to sell. The Puell Multiple, currently at 1.2, shows that miner earnings are still 20% above historical norms.
What This Means for Bitcoin Price
Miners not selling is a bullish signal—it reduces downward pressure on the price. If miners continue to hold, BTC could attempt to break out of consolidation and push toward $109,000.
However, should selling resume due to financial pressure, BTC may face a pullback toward $104,000.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
