Bitcoin Miners’ Reserves Drop to 12-Year Low as BTC Halving Approaches
According to data provided by IntoTheBlock, Bitcoin reserves held by miners have decreased significantly. While the market is excitedly waiting for the upcoming Bitcoin halving event, these reserves are at the lowest level in the last 12 years. Currently 1.92 million BTC is held in leading mining pools represented by Viabtc, Bitfury and Antpool. During the same period, reserves have been falling and miner outflows have increased by 52%.
Bitcoin network hash rate worldwide it is now lower than before. The price, which was previously at a maximum level of 714.89 EH/s on March 24, is currently at 624 EH/s. Analysts believe this will make the decline even more significant. This is especially true for the problems that less mining efficiency operations will face when the block reward decreases.
Effect of Halving on Bitcoin Miners’ Earnings
Planned Bitcoin halving will cut the prizes in half, bringing last week’s total to $445 million. As a result, miners’ profits from block rewards will be affected by a significant decrease. Experts predict that miners will suffer losses of approximately 10 billion dollars with the change. When we look at historical examples, we see that the periods after the halving normally lead to price increases, and these increases usually help the recovery. However, this particular bull route does not use regular mechanisms such as the pre-halving rally that may have resulted from Bitcoin ETF launches and therefore may produce different results.
Transaction fees, which were miners’ main source of income, are now part of their revenue share. In this case, transaction fees contributed only $11 million, and block rewards accounted for the bulk of the earnings. The rate of on-chain miner rewards has dropped to an all-time low of 0.08% and is expected to drop further from the start of the halving.
Miners Transfer $1 Trillion After ETF Approval
Among these, some of the factors that lead to the current market dynamics are many. approval Spot Bitcoin ETFBy maximizing market selling, it forced miners to shrink their reserves and increase prices. Allegedly, miners, who had approximately $1 billion in cash, transferred them to the stock exchanges after ETF approval. This suggests that it is the organization’s strategic plan to mitigate potential impacts on liquidity post-halving.
Additionally, Coingape recorded a decline Bitcoin logins Miners’ central exchanges dropped to 374 BTC last month from 1,388 BTC the previous month. This decline may indicate a cautious approach by miners aiming to hold onto their assets in anticipation of future price increases.
Also Read: Coin Center Claims Stablecoin Bill Threatens Freedom of Expression
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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