Bitcoin (BTC), the largest cryptocurrency by market capitalization, has experienced a decline of 4.5% over the past seven days, reaching a monthly low of $65,000. This downward trend may be attributed to the increased selling activity of mining entities, according to a recent report by CryptoQuant. The number of BTC transferred from mining entities to exchanges has reached a two-month high, coinciding with a decline in their revenues due to lower transaction fees.

On June 9, the hourly transfer of BTC, primarily from the (link unavailable) mining pool, to the crypto exchange Binance reached a two-month high of over 3,000 BTC. The next day, miners sold at least 1,200 BTC via over-the-counter desks, recording their highest daily volume since late March, when the daily volume totaled 1,600 BTC. Large Bitcoin mining companies have also increased their selling activity, with U.S.-based Marathon Digital offloading 1,400 BTC so far in June. This represents 8% of its total holdings, a significant increase from the 390 BTC sold in May.

The increased selling from Bitcoin miners comes amid low revenues following the halving. Daily miner revenues have plunged to approximately $35 million, down 55% from $78 million, a peak reached in March ¹. Daily Bitcoin transaction fees now hover around 65, a massive drop from the 117 recorded before the halving. In addition, median transaction fees have stayed low in USD terms despite the record-high number of transactions seen on the network in the past few weeks.

While miners increase their selling due to lower revenues, the Bitcoin network's hashrate has remained high. The hashrate has only fallen by 4% since the halving in April, which has put additional pressure on miners. A high hashrate means miners need more computing power, energy, and time to verify transactions and add blocks to the chain. It also means that miners are underpaid or extremely underpaid. Notably, they were fairly paid at the time of writing. Currently, Bitcoin's hashrate stands at 599EH/s, slightly down from the pre-halving rate of 622 EH/s. Miners are now competing for lower block rewards in terms of BTC under high pressure.

CryptoQuant analysts noted that a period with low miner revenues and high hashrate indicates price bottoms. It remains to be seen how low BTC can go before the market rallies again.