As an experienced financial analyst specializing in the cryptocurrency market, I have closely monitored the recent developments surrounding Bitcoin miners’ holding behavior and the impact of the latest halving event.
Bitcoin miners have chosen to hang on to their coins despite a significant decrease in mining revenues, according to CryptoQuant’s latest data, which is reminiscent of revenue levels from early 2023.
Despite seeing a significant decrease in their revenue, equivalent to earnings from early 2023, Bitcoin miners are holding onto their cryptocurrency hoard rather than selling at the current market prices. This situation arises due to the recent halving event that reduced fixed block rewards from 6.25 Bitcoins to 3.125 Bitcoins.
As a researcher studying the Bitcoin mining landscape, I’ve observed that miners’ earnings have dipped to figures last seen in the initial months of 2023 post-halving. Confronted with this situation, miners face two possible courses of action: either succumb (capitulation) or remain patient, hoping for a rebound in Bitcoin’s price. At present, there are no clear indications of miners opting for capitulation.
— Ki Young Ju (@ki_young_ju) April 30, 2024
In a post on April 30th, the CEO of CryptoQuant, Ki Young Ju, stated that miners face two possibilities: surrendering to current losses or holding out for an increase in Bitcoin’s price, which is presently valued at approximately $63,000. For now, there are no indications of miner capitulation.
Coinbase Research’s analysts pointed out in their report that after the halving, the simultaneous introduction of Runes on Bitcoin, an alternative to BRC-20, led to a record-breaking $81 million spent on transaction fees in a single day. According to them, the surge in variable transaction fees, coupled with Bitcoin’s price rise during Q1, might encourage miners to keep mining, as they can still make a profit at current prices.
As a Bitcoin analyst, I can tell you that on April 20th, Bitcoin experienced its fourth halving. This occurred after the mining of our network’s 840,000th block. Every 210,000 blocks, Bitcoin undergoes this process, resulting in a reduction by half of the reward given to miners for each new block they add to the chain. The crypto community views this event with great significance due to its impact on the number of new Bitcoins entering circulation.
In the past, Bitcoin’s value has seen notable fluctuations near halving moments, with certain market participants predicting a price surge due to the subsequent decrease in supply. However, the most recent adjustment transpired under distinct circumstances, as Bitcoin attained a fresh record-breaking high prior to the halving event. This anomaly has sparked debates among analysts, suggesting that the current scenario might differ from past price cycles.
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2024-04-30 13:03