Key Points
- Miners sold less than one-third of total coins sold in February last month.
- Bitcoin’s halving event is expected to significantly impact miners’ revenues.
Bitcoin Halving Event and Miners’ Actions
Bitcoin’s [BTC] halving event is just 12 hours away. This event is expected to significantly impact the revenues of miners, who secure the network and earn incentives through block rewards. Usually, miners begin liquidating their holdings before the halving to maximize profits before the revenue drop. However, this time around, things are different.
A researcher at on-chain analytics firm CryptoQuant noted that an average of 374 BTCs were sent daily to spot exchanges by miners over the past month. This figure is less than one-third of the daily average recorded in February. The researcher suggested that this action helped to prevent additional downside pressure on Bitcoin.
HODLing and Market Conditions
The current market slump, which has seen Bitcoin lose more than 12% of its value over the week, might have motivated the HODLing. Miners might be waiting for a post-halving rally to get better returns on their sale.
Simultaneously, the network hash rate, a measure of the total computational power dedicated by miners, rose to 641 exahashes per second (EH/s). This surge indicates miners’ push to maximize their earnings before they are halved.
Bitcoin’s value fell below $60,000 during Asia trading hours Friday due to escalating geopolitical tensions in the Middle East. However, the digital asset recovered to $62,000, as opportunistic traders capitalized on the dip to accumulate more Bitcoin.
