Miners’ Bitcoin Holdings Hit Lowest Level in 12 Years

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Based on data from crypto analysis tool IntoTheBlock, the amount of Bitcoin held by miners has reached a 12-year low prior to the scheduled halving.

According to IntoTheBlock, the total Bitcoin stored in the mining pools of major players like Viabtc, Bitfury, Poolin, Antpool, and Binance amounts to approximately 1.92 million BTC.

There has been a 52% increase in miner outflows over the last 90 days. 

Currently, the hashrate stands at 624 EH/s after peaking at 714.89 EH/s on March 24. 

Following the Bitcoin halving, there is a possibility that the hashrate may decrease due to some less productive miners being surprised by the sudden block reward reduction. However, after the last halving event, these miners managed to bounce back thanks to the subsequent price increases.

Instead of “However, this halving cycle is different in that Bitcoin hit a new peak price prior to the reward reduction because of Bitcoin ETF anticipation, likely causing some miners to sell for cash before the event,” you could also say:

Last week, miners made approximately $445 million in rewards. However, starting tonight, their rewards will decrease by half. This means that Bitcoin miners are projected to experience a significant loss of around $10 billion as a result of this reduction.

According to U.Today’s report, CleanSpark (CLSK) and Riot Platforms (RIOT) are projected to excel among miners following the upcoming halving event. In contrast, these miners earned a total of $11 million from transaction fees.

In the beginning, Bitcoin mining rewards made up almost 100% of all transactions on the blockchain. But after the first halving in 2012, their proportion plummeted to less than 1%. Currently, miner rewards account for only about 0.08%, a percentage that is predicted to decrease even more tomorrow.

The block reward is about to be decreased by half, from 6.25 to 3.125 BTC, in a matter of hours.

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2024-04-19 21:20