Bitcoin miners face intensifying financial distress as the cryptocurrency’s price fell below $60,000. Public miner Marathon Digital Holdings (MARA) moved approximately $87 million worth of Bitcoin to exchanges, signaling a potential sell-off. Industry-wide data shows daily miner revenue has plummeted to 2024 levels, down 36% year-over-year, while miner outflows have hit a yearly high, creating headwinds for Bitcoin’s price recovery.
The recent drop in Bitcoin’s price below $60,000 has significantly intensified distress across the mining sector. On-chain data showed that the publicly listed miner Marathon Digital Holdings (MARA) transferred 1,318 BTC, worth approximately $87 million, to centralized exchanges during the mid-week decline.
According to Bitcoin Treasuries, MARA holds 53,250 BTC, making it the second-largest public company holding Bitcoin. Miner sell-offs had previously increased in January, averaging 10,000 BTC daily as the price struggled below $80,000.
Daily miner revenue has now dropped to $28.3 million, a level last seen in the third quarter of 2024. This represents a 36% decline on a year-over-year basis, reinforcing the sector’s ongoing financial pressure.
The Hash Ribbons metric indicates the current miner capitulation phase began in late November when Bitcoin fell below $100,000. The 30-day moving average of the network hashrate has widened further from the 60-day average, signaling distress is far from over.
This suggests price rebounds could attract more miner sell-offs, potentially capping a strong recovery. The 14-day simple moving average of Miner Outflows has shot up over the past six days, reaching a yearly high of 10,750 BTC.
MARA seemed to have sold part of its BTC holdings amid miner distress as BTC’s price dropped below $70k. The rising sell-offs could keep Bitcoin’s price range-bound unless the metric eases.
