Block announced that in Q4 2023, Cash App generated $66 million in Bitcoin gross profit up 90% year-over-year.
New data shows that an all-time high amount of Bitcoin is being sent to centralised cryptocurrency exchanges from Bitcoin miners.
According to on-chain analytics firm Glassnode, Bitcoin ($BTC) miners are sending more Bitcoin earned from mining than ever before to exchanges, rather than holding in their own wallets or in cold storage. According to the platform, a record $128 million has been sent from miners to centralised crypto exchanges in the last week alone. This is more than 300% of their earnings per day.
#Bitcoin Miners are currently recording extremely high Exchange interaction, sending an ATH of $128M to Exchanges, equivalent to 315% of their daily revenue.
— glassnode (@glassnode) June 27, 2023
While miners’ earnings to exchanges have been volatile over the past few years, the current spike is unparalleled to anything previous. Historically, miners usually send their Bitcoin profits to exchanges to withdraw their crypto for fiat to cover any expenses and make a profit. With Bitcoin price sitting at the highest it has in months, it’s a good time for miners to withdraw and make more of a profit.
CryptoQuant co-founder and CEO Ki Young Ju weighed in on the matter, suggesting that the current market is heading into a bull market cycle.
#Bitcoin PER (miner revenue-based) at 73 implies:
1/ Attractive price for miners to sell.
— Ki Young Ju (@ki_young_ju) June 23, 2023
While this is occurring, the price of Bitcoin has not seen any major impact. Currently, Bitcoin is sitting at just above $30,400, a 5.5% increase in the last week.
While Bitcoin mining has increased with the rising value of Bitcoin, profitability for miners is still looking at a 30% drop since this time a year ago. The current rate is a far cry from the 2021 bull market. This is also coupled with increasing hash rates and difficulty, which make the process ultimately more expensive, bringing down the overall mining profitability.