Bitcoin miners are facing significant challenges due to rising production costs, leading many to sell their BTC holdings. CryptoQuant, a blockchain analytics platform, has detected a substantial increase in mining pool transfers and Over-the-counter (OTC) desk sales. This surge in selling activity is attributed to the significant increase in mining costs following the Bitcoin halving event in April.

According to Ali Martinez, a prominent crypto analyst, the cost of mining a single Bitcoin has risen to $77,000, leading to a wave of capitulation among miners. As a result, miners have ramped up selling, causing a price correction that has seen Bitcoin fluctuate between $69,000 and $71,000. Transfers from mining pools to Binance have surged, reaching a two-month peak of over 3,000 BTC, while OTC desks have seen a significant increase in sales, with miners selling 1,200 Bitcoin on Monday alone.

Several US Bitcoin companies, including Marathon Digital Holdings Inc, have also been selling their Bitcoin holdings, with Marathon offloading 1,400 Bitcoins in June, representing 8% of its Bitcoin holdings. The selling pressure is attributed to the significant decline in mining revenue, which has dropped by approximately 55% since March, from $78 million to $35,000.

While some expect Bitcoin to reach $100,000 by the end of June, the increased selling pressure may negatively impact the price in the short term. However, as the market balances out with increased liquidity, Bitcoin may be poised for a bull run if demand from spot Bitcoin ETF issuers remains strong.

In conclusion, Bitcoin miners are facing significant challenges due to rising production costs, leading to increased selling activity. While this may impact the price in the short term, the market is expected to balance out with increased liquidity, potentially paving the way for a bull run.