Plunge

Free Speech

Bitcoin ETF

Bitcoin

Impact

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 <a href="https://coingape.com/bitcoin-miners-on-a-aggressive-selling-spree-btc-hashrate-tanks-34/">Bitcoin network hashrate</a> 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. 
<img decoding="async" class="aligncenter size-full wp-image-192559" src="https://coingape.com/wp-content/uploads/2024/04/GLijE54W8AAIlfj.jpg" alt="" width="1120" height="466" srcset="https://coingape.com/wp-content/uploads/2024/04/GLijE54W8AAIlfj.jpg 1120w, https://coingape.com/wp-content/uploads/2024/04/GLijE54W8AAIlfj-300x125.jpg 300w, https://coingape.com/wp-content/uploads/2024/04/GLijE54W8AAIlfj-768x320.jpg 768w, https://coingape.com/wp-content/uploads/2024/04/GLijE54W8AAIlfj-150x62.jpg 150w" sizes="(max-width: 1120px) 100vw, 1120px"> 
<h2 id="strong-impact-of-the-halving-on-bitcoin-miners-earnings-strong">Impact of the Halving on Bitcoin Miners’ Earnings</h2> 
The scheduled <a href="https://coingape.com/bitcoin-halving-countdown-start-what-expect/">Bitcoin halving</a> 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. 
<h2 id="strong-miners-transfer-1-billion-post-etf-approval-strong">Miners Transfer $1 Billion Post-ETF Approval</h2> 
Among them, some of the factors that have led to the current market dynamics are numerous. The approval of <a href="https://coingape.com/chinas-fund-submits-spot-bitcoin-etf-application-in-hong-kong-hints-at-q2-launch/">spot Bitcoins ETF</a>s 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 <a href="https://coingape.com/bitcoin-halving-miners-reduce-selling-pressure-as-profit-expectations-rise/?utm_source=cgtelegram">Bitcoin inflows</a> 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. 
Read Also: <a href="https://coingape.com/coin-center-asserts-stablecoin-bill-threatens-free-speech-rights/">Coin Center Asserts Stablecoin Bill Threatens Free Speech Rights</a> 
The post <a href="https://coingape.com/bitcoin-miners-reserves-plunge-to-12-year-low-as-btc-halving-approaches/">Bitcoin Miners Reserves Plunge to 12-Year Low as BTC Halving Approaches</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bitcoin Miners Reserves Plunge to 12-Year Low as BTC Halving Approaches

Table of Contents

Coingape News Media

Other articles published on Apr 19, 2024

Solana Blockchain Has an Abundance of Spam Transactions

Last Hours for Bitcoin Halving: Will the Expected Rally Come or Will It Be a Disappointment? Here...

Telos & Ponos Unveil Ethereum L2 Partnership at TOKEN2049

Blockchain Expo North America 2024 set to showcase latest developments in crypto innovation

TON Network Welcomes USDT Support Boosting Toncoin’s Market Position

Bitcoin Bull (BTCBULL) to Skyrocket Over 2,000%, as SHIB Millionaire Issues Buy Call

Join our free newsletter for daily crypto updates!