Miners on the brink: forced sell-off of bitcoins as price drops to $60,000
The Bitcoin (BTC) market has come under pressure again, and this time the epicenter of the problems has shifted toward miners. The drop in the price of the leading cryptocurrency to the $60,000 mark in early June triggered a massive forced sell-off by miners. An analysis of fund flows to centralized exchanges, particularly Binance, reveals an alarming trend: miners are actively offloading their coins to cover operating costs while operating at a loss.
Cost Above Market: Why Miners Are in the Red
The situation for miners is critical. Since October last year, the network's hashrate has dropped by about 28%, indicating a mass shutdown or repurposing of capacity. Mining difficulty, in turn, has adjusted by 20% over the same period. However, the main problem lies in the economics of the process. With an estimated cost of mining one Bitcoin at around $76,000 and the current market price around $65,000, the vast majority of miners are operating with negative margins.
This forces them to sell their mined coins, often at the worst possible time. Data on BTC inflows from miners to Binance shows a clear correlation with price drops. In February, when Bitcoin first tested the $60,000 level this year, the average daily sales volume from miners jumped from 5,000 to 8,000 BTC. And on February 5, a record spike was recorded—over 24,000 BTC in a single day.
June Repeat: Scenario Activated Again
History repeated itself in early June. As soon as the price again approached the critical $60,000 mark, miners ramped up sales. For four consecutive days, the daily inflow volume from miners to Binance exceeded 10,000 BTC, peaking at 12,800 BTC. The monthly average surged from 4,700 to 7,100 BTC. Such volumes create additional pressure on the market, reinforcing the downward trend.
We are witnessing a classic "vicious cycle": a price drop reduces mining profitability, forcing miners to sell more coins, which in turn puts further downward pressure on the price. As long as the cost of mining significantly exceeds the market value of Bitcoin, this dynamic will persist, creating a serious risk for short-term price recovery.
My professional opinion: The current situation is a stress test for the Bitcoin network. Only large, efficient pools with access to cheap electricity will survive. For the market, this means that until miners adapt to the new realities or the price returns above the breakeven level, we will see periodic spikes in sales that will curb bullish momentum.