The rise in Bitcoin’s price in July has offered significant relief for miners, contributing to a boost in mining operations and a decline in the selling pressure.

According to a report from CryptoQuant as of July 31, the selling of Bitcoin (BTC) by miners has decreased, with daily revenues seeing an increase of nearly 50% since the start of the month. On July 29, the hashrate reached 604 EH/s—a 6% rise compared to its low point on July 9, which was the lowest since February 28. The report highlights:

“Daily miner revenues are currently around $32 million, compared to a yearly low of $22 million noted in early July. The elevation in revenues is contributing to the resurgence of the network hashrate.”

During the last month, Bitcoin’s price increased by roughly 6%, trading at approximately $66,500 at the time of writing. This figure represents a remarkable growth of over 49% for the year.

The rise in miner revenues has led to a decrease in the Bitcoin sold from miners’ reserves in recent weeks. The same report states that outflows from miners have been “generally lower than earlier in the year, indicating reduced selling pressure as prices climbed.”

Throughout July, daily sale volumes from miners fluctuated between $5,000 to $10,000, in contrast to $10,000 to $20,000 observed when Bitcoin first surpassed the $70,000 threshold, allowing miners to cash out prior to the halving event that cut revenues by half.

The halving event is a crucial aspect of Bitcoin’s deflationary model, occurring every four years, which diminishes the block rewards for miners.

However, the distribution of sales among miners is uneven. Larger miners have been increasing their Bitcoin holdings throughout 2024, whereas smaller miners have greatly diminished theirs.

Data from CryptoQuant reveals that as of July 29, large miners held a total of 65,000 BTC, up from 61,000 BTC at the beginning of the year. In contrast, smaller miners’ total holdings have decreased from 59,000 BTC to 51,000 BTC in 2024, with sales accelerating post-halving.

Currently, transaction fees constitute 1.72% of total mining revenues, marking the lowest point since October 2023. “A potential risk for miners is that fees remain at suppressed levels as mining profitability heavily relies on Bitcoin’s price,” the report concludes.