ChainCatcher reported that CryptoQuant analyst Darkfost said miner selling pressure has returned after the recent rebound in Bitcoin’s price. The indicator highlighted by Darkfost is a significant increase in miner inflows to Binance, showing that miners have been moving more Bitcoin to the exchange. In this context, rising exchange inflows from miners are treated as an on-chain signal connected with selling activity from mining entities.
Darkfost noted that miner hashrate has fallen by about 28% since the end of last October, alongside a 20% difficulty adjustment. The decline in hashrate points to a contraction in mining activity, while the difficulty adjustment has changed the operating conditions for miners. These shifts have added pressure to mining operations as profitability remains strained.
According to Darkfost, the current production cost for Bitcoin is around $76,000, while Bitcoin is trading at about $65,000. With the production cost above the trading price, most miners are operating at a loss and are being forced to sell Bitcoin. Darkfost described the increase in Binance miner inflows as a direct reflection of the return of miner selling pressure.