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.

The increase in mining difficulty has reduced earnings and competition among miners has increased. The market value per unit of hashing power has decreased in May, indicating a decrease in demand for mining hardware. It is uncertain how far the sell-off will go and if Bitcoin activity will recover in the meantime.