Bitcoin mining profitability has plummeted by more than 75% from the market peak, and is now at its lowest level since October 2020. Bitcoin Price Plummets Further Bitcoin’s price plummeted to a 52-week low of $20,800 on Wednesday, down from an all-time high of $68,788 by more than 70%. Despite the fact that the price has already returned above $21,000, important market indications indicate that bears still have a strong grip on the current market. The Bitcoin Miners to Exchange Flow, a metric that measures the amount of BTC transferred from miners to crypto exchanges, hit a seven-month high of 9,476. The increase in exchange flows suggests that miners are selling their BTC in anticipation of a price drop. BTC miners'exchange flow. Source: Glassnode. Related article | Exchange Inflows Ramp Up As Crypto Investors Clamor To Exit Market Miners Actions Signals Market Sentiment BTC miners’ activities often mirror broader market sentiment, as they typically sell BTC to avoid losing money on their mining payouts. The large drop in mining profitability explains the increase in Bitcoin miners selling activity. Mining profitability has plummeted by more than 75% since its peak, and Bitcoin’s hash price is at $0.0950/TH/day, the lowest since October 2020. BTC/USD falls to a 52-week low. Source: TradingView The netflow of miners to exchanges has also improved. When the miner netflow is positive, it means that more c...
