On-chain data shows that Bitcoin miners are selling their holdings, possibly due to reduced earnings from a cooldown in Ordinals activity and an all-time high in mining difficulty and hash rate. Miners have been sending a significant amount of coins to exchanges, with inflows spiking to a three-year high on June 3.

According to a report by Matrixport, Bitcoin (BTC) is facing selling pressure at the $28,000 price level, possibly due to miners being forced to liquidate new inventory produced. The report suggests that profit margins have compressed in recent weeks, making mining very competitive and often unprofitable. Markus Thielen, head of research, wrote that most machines produced before 2022 appear to be unprofitable at current input cost and potential output revenue expectations. However, Matrixport foresees significant upside convexity for miners if Bitcoin prices increase by 10% or more.

Bitcoin's price has recovered slightly over the weekend but remains at a seasonal low of $27,360. According to CryptoQuant, miners may be behind the latest slump as they have been reducing their holdings since May 5. The selling pressure has remained consistent, culminating in Bitcoin tumbling to a multi-month low of $26,260 on Friday. However, CryptoQuant has reason to believe the selloff will end soon as the miner net position values are in the zone where Bitcoin bounced off in previous times.

According to data from Glassnode, Bitcoin miners have earned a total revenue of $50.2 billion from block subsidies and fees since the cryptocurrency's inception. The estimated input cost for mining during this time was $36.6 billion, resulting in an all-time aggregate profit margin of $13.6 billion, a 37% increase.

The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has asked Finance Minister Anton Siluanov to explain a proposal made by his department to introduce penalties for cryptocurrency miners violating the law.

The senate bill, authored by state Sen. Josh Harkins, legalizes home digital asset mining and the operation of mining businesses in areas zoned for industrial use. There are already crypto miners operating in Mississippi, which has some of the lowest electricity rates in the country. However, the bill claimed:

The Russian central bank continues to maintain an extremely negative stance on cryptocurrencies, proposing to ban local miners from selling coins to local people.