Data from Cryptoquant indicates that bitcoin miners have been offloading their assets in anticipation of the upcoming Bitcoin network halving, slated to take place in two weeks. Cryptoquant highlighted a peak in daily sales to over-the-counter (OTC) trading desks, a figure unmatched since the summer of 2023.
Miners Offload Bitcoin in Anticipation of Reward Halving, Says Cryptoquant
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Record Sales to OTC Desks Mark Bitcoin Miners’ Prep for Reward Cut
Currently, at a block height of 837,984, there are precisely 2,016 blocks remaining until the forthcoming Bitcoin block halving event, which will reduce the reward from 6.25 BTC to 3.125 BTC. Cryptoquant, in a report shared on the social media platform X last Friday, shed light on how bitcoin ( BTC) miners will need to “innovate [and] improve” post-halving.
In examining revenue against hashprice, Cryptoquant’s analysts observed that despite daily revenues reaching new peaks, the miner hashprice has plummeted by 30% compared to levels before the last halving, indicating a decline in earnings per unit of computational work. The analysts also pointed out that BTC mining operations are currently divesting their bitcoin holdings in advance of the fourth halving event.
The researchers stated:
Some miners are selling more [ bitcoin] before the halving. Daily sales to OTC desks hit 1.6K bitcoin in late March, the most since August 2023.
Moreover, the analysts highlight that declining transaction fees are intensifying the strain on bitcoin miners as the halving event approaches. In its recent mining analysis, Cryptoquant shed light on this predicament, revealing that miners are grappling with heightened competition and diminished fees in the lead-up to the reward reduction event. “Although the daily revenue collected by the entire bitcoin mining industry has reached record-high levels in 2024, bitcoin miners still face headwinds,” the research study details.
What do you think about Cryptoquant’s analysis of miners offloading bitcoin before the halving event? Share your thoughts and opinions about this subject in the comments section below.
