Bitcoin

Bitcoin (BTC) price showcased a marginal approach ahead of the much anticipated halving event. <a href="https://news.todayq.com/bitcoin-reclaims-43000-after-powells-remarks-on-interest-rate/" target="_blank" rel="noopener noreferrer nofollow">BTC price dropped</a> by 2% in the last 30 days. However, it seems like Bitcoin miners are preparing for the upcoming halving event in April. Bitcoin miners seek opportunity 
According to the data provided by CryptoQuant, BTC miners have begun selling more of their mined bitcoins. Miner reserves, tracked through associated digital wallets, have dropped by 8,400 tokens since the start of 2024, reaching a level last seen in June 2021, according to data from CryptoQuant.
This event, intended to cap the total supply of Bitcoin at 21 million tokens, will see rewards drop to 3.125 coins per block from the current 6.25 coins. Analysts believe that miners are selling their holdings to fortify balance sheets and fund expansion ahead of tougher times for profit margins post-halving.
Data depicts that there are around 900 Bitcoin mined every day while halving this amount will drop to 450 BTC. If the current rate of inflows to spot ETFs persists then the market could see the amount of Bitcoin purchased daily surpassing the newly mined supply. Reserves on a decline 
The reduction in miner reserves is impacting the Bitcoin price. However, BTC faced challenges since the approval of the first US ETFs. BTC has seen a 6% decline to $43,000 during this period. CryptoQuant reports a net outflow of 3,617 Bitcoin from miner wallets to exchanges since the ETF approvals. A major outflow of 13,542 tokens on February 1, the largest single-day efflux since December 2020.
The sales from miner reserves are seen as a strategy to finance the purchase of more efficient mining rigs. Smaller mining operations, with limited access to capital markets, could be particularly vulnerable to the reduction in revenue. This will potentially be facing challenges that might force them out of business.
Larger mining companies, such as Marathon Digital Holdings Inc., have taken different approaches, using cash reserves and even selling shares to navigate the changing landscape.
Marathon Digital Holdings, the largest US miner, has stated that it holds approx $1 billion in cash and Bitcoin on its balance sheet, providing flexibility to adapt to market conditions. The Bitcoin market, which surged 157% in the previous year, is currently navigating uncertainties in 2024, influenced by the halving event and the recent approval of Bitcoin ETFs.
Get Crypto Trading Signals from Real Crypto Analysts. Join our Waiting List at todayq.com

Bitcoin miners increase sell-offs ahead of halving event

Todayq News

Otros artículos publicados el 7 feb 2024

Ripple’s Revolution: Pioneering Global Finance Through Asset Tokenization

Bitcoin Price Prediction: MicroStrategy Bolsters BTC Holdings With $37 Million Purchase As Expert...

Magic Eden Partners With Azuki To Develop Its Upcoming ETH NFT Marketplace

Bitcoin skeptic Peter Schiff slams new SEC crypto rules

ARB Price Hints Bullish Reversal! Arbitrum Price Eyes To Reclaim $2?

Federal Reserve says the U.S. job market doesn’t move it

¡Únete a nuestro boletín gratuito para recibir actualizaciones diarias de criptografía!