Bitcoin miners are channeling an unparalleled quantity of BTC to centralized cryptocurrency exchanges. On June 27, Glassnode, an on-chain analytics platform, tweeted about a record-setting amount of Bitcoin miner revenue being transferred to exchanges. The platform highlighted an “exceptionally high exchange interaction” from Bitcoin miners, who have dispatched a record $128 million to exchanges in the past week. This figure represents 315% of their daily revenue.

During the 2021 bull run, there were multiple surges in miner revenue transferred to exchanges as profits were realized. A significant inflow also occurred in late 2022 when the markets reached their cycle low. However, the most recent surge has significantly outpaced all previous ones.

Typically, miners transfer their BTC profits to exchanges when they are preparing to liquidate to cover costs and secure profits. The past week was an opportune time for such actions, as BTC reached its highest price of the year, peaking at $31,185 on June 24.

Ki Young Ju, co-founder and CEO of CryptoQuant, agreed with this sentiment, stating that the current price-to-earnings ratio made it an “attractive price for miners to sell.” Despite this, Bitcoin prices have remained relatively stable, hovering just above the $30,000 mark at the time of writing.

However, the current $31,000 price zone presents a significant resistance level for BTC. The market failed to surpass this level in mid-April and again in late June. If the bulls are unable to make headway, future losses are anticipated, especially if miners begin to liquidate.

Bitcoin mining profitability, or hash price, has seen a slight increase over the past week due to the rise in BTC prices. According to HashrateIndex, it currently stands at $0.076 TH/s (terahashes per second) per day.

Despite Bitcoin’s price increasing by more than 88% since the beginning of the year, miners are still grappling with significant challenges. Profitability has dropped by over 30% since July of the previous year and is down by more than 80% since the peak of the 2021 bull market.

With near-record hash rates of 377 EH/s and peak difficulty levels, Bitcoin miners continue to face a challenging environment. The combination of increasing hash rates and difficulty, along with higher energy prices, has exerted downward pressure on mining profitability. As a result, miners may find themselves compelled to sell their hard-earned Bitcoin to cover expenses.

Related: Riot Platforms to add 33,000 Bitcoin miners ahead of 2024 halving