Per data provided by IntoTheBlock, bitcoin reserves held by miners have considerably decreased. These reserves are standing at their lowest level in the past 12 years as the market eagerly awaits the upcoming Bitcoin halving event. Currently, 1.92 million BTC are held by leading mining pools represented by Viabtc, Bitfury, and Antpool. In the same period, the reserve has been falling, and miner outflows have grown by 52%.
The Bitcoin network hashrate globally is currently lower than it used to be. It is currently at a level of 624 EH/s, having previously been at a maximum of 714.89 EH/s on March 24. Analysts believe that this will make the drop even more crucial. This is especially so for the problems that less mining efficiency operations will be likely to deal with when the block reward reduces.
Impact of the Halving on Bitcoin Miners’ Earnings
The scheduled Bitcoin halving will cut rewards in half, and this past week will amount to $445 million. As a result, miners’ profit from block rewards will be affected, having a considerable decrease. Experts predict a loss of about $10 billion for miners will occur with the change. Looking back to historical instances, we see that periods after halving normally entail price surges that often help restoration. However, this particular bull course does not use regular mechanisms, namely a pre-halving rise that may have been caused by Bitcoin ETF launches and may, therefore, produce different results.
Transaction fees, which used to be miners’ main revenue stream, are now part of their income share. In this case, transaction fees contributed only $11 million, and block rewards contributed the bulk of earnings. The proportion of on-chain miner rewards fell to an all-time low of 0.08% and is forecasted to dip further from the onset of halving.
Miners Transfer $1 Billion Post-ETF Approval
Among them, some of the factors that have led to the current market dynamics are numerous. The approval of spot Bitcoins ETFs has maximized the market sale, forcing miners to shrink their reserves and increase prices. Supposedly, the miners who hold about $1 billion transferred them to the exchanges after the ETF approvals. This shows that it is the organization’s strategic plan to mitigate the potential effects on their liquidity post-halving.
Additionally, Coingape noted a decrease in Bitcoin inflows to centralized exchanges from miners, which fell to 374 BTC last month from 1,388 BTC the previous month. This reduction may suggest a cautious approach by miners, aiming to hold onto their assets in expectation of future price increases.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
