Despite rising operational costs, leading miners like Marathon Digital and CleanSpark are not only expanding production but also choosing to hold their mined BTC. This could mean that miners have long-term confidence in Bitcoin’s value. Meanwhile, institutional players like Strategy and its co-founder Michael Saylor also continue accumulating. Market sentiment is also still bullish, supported by strong ETF inflows and the growing recognition of Bitcoin as an alternative to gold and Treasuries. Analysts warn, however, that geopolitical shocks could still challenge this momentum.
Mining Difficulty Slips but Bitcoin Miners Still Battle
Bitcoin's mining difficulty saw a slight decline, dropping to approximately 126.4 trillion after reaching a record high of 126.9 trillion on May 31. This adjustment, while minor, happened amid increasing financial pressure on miners due to reduced block rewards after the April 2024 halving, rising energy costs, and sustained high network hashrate. These combined factors are pushing up competition and production costs, testing the profitability and resilience of mining operations.
Bitcoin mining difficulty (Source: CryptoQuant)
Despite these headwinds, some publicly traded Bitcoin mining companies are not only managing to stay afloat but are expanding aggressively and adopting a new approach by holding onto their mined Bitcoin instead of selling it. Marathon Digital Holdings (MARA) is a major player in this trend.
In May, the company boosted its Bitcoin output by 35% by mining 950 BTC during a month that was marked by record hashrate levels and heightened market volatility. MARA’s decision to keep all the Bitcoin it mined pushed its corporate treasury to 49,179 BTC, which made it one of the largest institutional holders of Bitcoin globally. “Record production month for MARA — and we sold zero Bitcoin,” CFO Salman Khan said in a post on June 3.
CleanSpark, another publicly listed mining company focused on sustainable energy, also reported gains. The firm produced 694 BTC in May, which was up 9% from April, and now holds 12,502 BTC in reserves. According to CEO Zack Bradford, CleanSpark increased its operational hashrate to 45.6 exahashes per second by the end of May, representing a 7.5% increase from the previous month.
Bitcoin miners are some of the top Bitcoin holders (Source: BitcoinTreasuries.NET)
The shift in strategy by companies like MARA and CleanSpark could mean that there is a deeper confidence in Bitcoin’s future value.
Saylor Signals New BTC Buy
Mining companies are not the only institutions interested in hoarding Bitcoin. For now, BTC is holding steady above $105,000 despite escalating geopolitical tensions in the Middle East, including Israeli airstrikes on Tehran and concerns over potential disruptions to global oil supply. The relative price stability of Bitcoin comes at a time when global financial markets are bracing for increased volatility when trading resumes on Monday.
In a move that suggests continued confidence in Bitcoin, Strategy co-founder Michael Saylor posted a BTC chart that many see as a sign of another imminent Bitcoin purchase by the company. Strategy’s most recent acquisition took place on June 9, when it bought 1,045 BTC worth around $110 million. This brought the firm’s total Bitcoin holdings to 582,000 BTC. According to data from SaylorTracker, Strategy is now up more than 50% on its Bitcoin investment, which translates into over $20 billion in unrealized gains.
Saylor’s timing is interesting, as the announcement was made during a weekend of heightened conflict between Israel and Iran. Despite these geopolitical developments, Bitcoin only experienced a minor 3% dip since the conflict escalated. This price stability has been supported by strong investor interest in Bitcoin exchange-traded funds (ETFs), which recorded more than $1.3 billion in net inflows over the past week. According to Farside Investors, BTC ETFs saw five straight days of capital inflows, which means that there is sustained demand for exposure to Bitcoin.
Crypto Fear and Greed Index (Source: Alternative)
Market sentiment is also still bullish, with the Crypto Fear and Greed Index standing at 61. This suggests that investors are still optimistic in the face of global uncertainty. However, not all analysts share this confidence.
Coin Bureau founder Nic Puckrin warned that if Iran were to close the Strait of Hormuz—a crucial passage for 20% of the world’s oil shipments—it could cause a spike in energy prices. Such a development would have huge ripple effects across global markets, and could potentially drag down risk assets, including cryptocurrencies, due to increased economic pressures.
While Bitcoin’s current performance points to its role as a hedge against geopolitical turmoil, the events in the Middle East and their broader economic consequences will still be key variables influencing market sentiment over the next few days.
Woes Push Investors Toward Bitcoin
Overall, Bitcoin is increasingly being seen as a viable alternative to traditional stores of value like gold and US Treasuries, according to Bitwise CEO Hunter Horsley. In a recent statement, Horsley shed some light on Bitcoin’s total addressable market as not only the $16 trillion gold market but also the $30 trillion-plus held in US Treasury securities by institutions and individual investors.
His comments came in response to economist Mohamed El-Erian, who explained that US Treasury flows are no longer a reliable indicator of investor sentiment during times of market stress. Instead, El-Erian suggested that analysts look to flows into gold and silver, traditional safe havens, for clues about where capital is moving during rising uncertainty.
Bitcoin’s positioning as a digital alternative to gold has gained momentum, especially as investors seek tools to hedge against geopolitical risks, inflation, and market instability. With its decentralized design and capped supply, Bitcoin is increasingly seen as a savings technology that offers protection from the risks tied to fiat currencies and government-managed financial systems.
The recent geopolitical developments and fiscal concerns have only strengthened this narrative. In the United States, President Trump’s “Big Beautiful Bill” has come under scrutiny for its projected $2.5 trillion in deficit spending, which adds to the country’s already staggering $37 trillion national debt. Critics, including Elon Musk and other fiscal conservatives, argue that the bill undermines the long-term financial stability of the country.
The bond market reacted sharply to these concerns in April of 2025, particularly after Trump’s proposed trade tariffs and the growing debt load. Investors dumped government bonds, which led to a spike in yields as they demanded higher returns to offset the perceived risk of holding US debt. Saifedean Ammous, author of The Bitcoin Standard, said that the market was clearly rattled by Trump’s fiscal policies and that calming the situation would require a major shift in economic strategy.
Against this backdrop of fiscal instability and geopolitical tension, Bitcoin continues to attract attention as a potential safe haven.
