Bitcoin Miner Reserves Drop: As of June 19, 2024, the reserves held by Bitcoin miners have dropped to 1.90 million BTC, which corresponds to their lowest level in more than 14 years. This considerable reduction marks the lowest point since February 2010, showing a tendency in which miners maintain less Bitcoin on their balance sheets—a trend observed since February 2010. Even though Bitcoin reserves have decreased, the value of these holdings in fiat currency is still very close to reaching an all-time high, hovering around $135 billion.
Bitcoin Miner Reserves Fall
Midway through June, according to data from IntoTheBlock, miner reserves dropped from 1.95 million BTC at the beginning of the year to 1.90 million BTC. The halving event on April 20, 2024, reduced mining payouts from 6.25 BTC to 3.125 BTC, which is mainly responsible for this decline. IntoTheBlock’s head of research described the trend, Lucas Outumuro: “Miners are expected. To hold less Bitcoin over time as the halving pressures their margins.”
About once every four years, a halving event drastically reduces the incentives miners receive for their Bitcoin operations. Outumuro pointed out that the reserve depletion rate has been historically gradual, which has kept the market from being severely pressured. “This hasn’t been a major selling pressure historically because it has been a relatively slow rate,” he said.
The decline in Bitcoin reserves has not diminished the high dollar value of those assets, thanks to the rise in Bitcoin price. A key point made by Sascha Grumbach, CEO of Green Mining DAO, was that miners had learned from previous cycles and responded to these adjustments. The days of making poor financial decisions by relying too much on debt and hoarding Bitcoin are over.
Despite declining miners’ Bitcoin holdings, the market cap of Bitcoin mining companies listed in the US has skyrocketed. The combined market value of these companies hit a new high of $22.8 billion on June 15, 2024. Stocks in Core Scientific surged 117%, TeraWulf 80%, and IREN 70%, in that order. The halving and market dynamics have had a broader effect. Causing miner revenue and reserves to fall even while stock prices have risen.
According to Glassnode’s research, Bitcoin Miner Reserves Drop balances have steadily declined over the past few weeks, and reserves are currently at around 1.8 million BTC. The continued price decline suggests miners focus less on building. Bitcoin for the future and more on preserving their financial stability.
Also Read: Transaction Fees Save! Network Activity Soothes Bitcoin Miners
Bitcoin Miners Sell Off Longest Since 2017 Amid Bearish Trends
According to on-chain statistics examined by James Van Stratten, lead analyst of CryptoSlate, Bitcoin miners are going through a prolonged sell-off period that hasn’t been witnessed since 2017. The Bitcoin market is 33 days into a miner surrender as of June 17. Historically, these capitulations have lasted around 41 days. Suppose Bitcoin miners must turn off their equipment or sell their BTC to keep operating. In that ca. In that case,e, then as “miner capitulation,” which signifies that the business circumstances are unprofitable. The block subsidy was reduced from 6.25 BTC to 3.125. BTC per block in April’s Bitcoin halving, miner profits have faced a significant challenge.
Miners ‘ average revenue has declined from around 900 BTC to 450 BTC daily since April 19. Although network fees do generate some income, they are still relatively tiny. Only the most productive businesses can hope to stay afloat in today’s cutthroat mining industry. According to on-chain data, even the largest publicly listed mining companies are selling their coins as profit margins shrink despite assumptions. That they would survive post-halving. Last Wednesday, CryptoQuant claimed that it was the biggest publicly traded miner. Marathon Digital was the main initiator of 1,200 BTC in over-the-counter (OTC) deals sold by miners.
The price of Bitcoin fell 2%, reaching around $65,152, on June 18. The selling pressure on Bitcoin has intensified today as the cryptocurrency hits an intraday low of $64,700. The lowest holdings of Bitcoin by hedge funds since October 2020, hovering around $65,100. As a result of the fall in price, the short-moving average. Which served as support at roughly $66,000 and is now acting as resistance. Bitcoin is currently at approximately $65,660 but has not overcome this new resistance level.
