Despite the Bitcoin (BTC) mining industry recording its worst profitability in the past year, most miners are continuing to hold their assets and maintain a long-term holding (HODL) strategy. According to on-chain indicator analysis from the market intelligence platform CryptoQuant, miner revenue continues to decline, but selling pressure is actually decreasing.
According to CryptoQuant, miners' daily revenue dropped to approximately $34 million (about 47.2 billion won) as of June 22, reaching its lowest level in two months. This is a result of Bitcoin price adjustments and decreased transaction fee revenue. This point represents the lowest revenue level since April last year, particularly impacted by the block reward reduction from 6.25 BTC to 3.125 BTC after the recent halving.
This deterioration in profitability is also reflected in the Bitcoin network's hash rate (mining difficulty). The hash rate has fallen by 3.5% since June 16, which is the largest decline since July 2024. At that time, the hash rate had also dropped sharply by 8.4% due to reduced profitability after the halving.
Nevertheless, miners' Bitcoin exchange inflows have noticeably decreased. While over 23,000 BTC were flowing into exchanges daily at the beginning of the year, this has now reduced to around 6,000 BTC. This is because miners are still maintaining an average 48% Network Unrealized Profit/Loss (NUPL) and are adopting a strategy to maximize profits by extending their holding period.
Particularly, the wallet balances of medium to large miners holding 100-1,000 BTC have increased from 61,000 BTC at the end of March to 65,000 BTC currently. This is the highest level since November 2024, signaling that they believe Bitcoin still has potential for further appreciation.
Long-term miners who have been mining Bitcoin since the Satoshi era (2009-2011) are also extremely cautious about selling. They have only sold 150 BTC this year, significantly lower than the 10,000 BTC sold in the previous year. The fact that these historically market-top movers have not yet made a move suggests that Bitcoin still has substantial room for growth.
These data points demonstrate that miners maintain strong confidence in Bitcoin despite short-term profitability challenges. While there are short-term revenue declines, the overall market's growth potential and long-term outlook remain 'positive'.
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