According to IntoTheBlock’s data, the amount of bitcoin held by miners has significantly decreased. This is a 12-year low for miner reserves as the market anticipates the upcoming Bitcoin halving. Currently, approximately 1.92 million BTC are controlled by major mining pools such as Viabtc, Bitfury, and Antpool. Over the same time frame, there has been a decline in miner reserves and an increase of 52% in miner outflows.
The global Bitcoin network hash rate, which represents the total computational power used to mine Bitcoins, has dropped below previous levels. Currently, it stands at approximately 624 Exahash per second (EH/s), compared to its peak of 714.89 EH/s reached on March 24. Experts predict that this decline could exacerbate the impact on less efficient mining operations when the block reward is reduced in the future.
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.
Previously, transaction fees were a significant source of income for miners. However, their share in total miner revenues has decreased, with only $11 million coming from transaction fees in this instance. In contrast, block rewards made up the majority of earnings. The percentage of miner rewards derived from on-chain transactions reached an all-time low of 0.08%, and it’s predicted to decline even more following the upcoming halving event.
Miners Transfer $1 Billion Post-ETF Approval
Some factors contributing to the present market situation include the approval of Bitcoins ETFs on the spot market, which has boosted sales and caused miners to reduce their reserves, raising prices. It is believed that miners holding approximately $1 billion moved their coins to exchanges following the ETF approvals. This move suggests that the organizations aim to lessen the impact on their liquidity after the upcoming halving event.
Another observation made by Coingape was that the amount of Bitcoin moving from miners to centralized exchanges decreased significantly last month, going from 1,388 BTC to just 374 BTC. This decrease could be indicative of miners being more cautious and choosing to keep their Bitcoin, possibly in anticipation of future price rises.
Coin Center Asserts Stablecoin Bill Threatens Free Speech Rights
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- SOL PREDICTION. SOL cryptocurrency
- USD RUB PREDICTION
- USD COP PREDICTION
- USD PHP PREDICTION
- ANKR PREDICTION. ANKR cryptocurrency
2024-04-20 02:29