Key Points
- The volume of Bitcoins contributed by miners has been decreasing since the last halving event on 19 April.
- This decrease has slowed the rate at which new Bitcoins are created and entered into circulation.
The contribution of miners to the volume of Bitcoin (BTC) has been on a downward trend since the last halving event. This event, which took place on 19 April, was aimed at reducing the amount of BTC in circulation by halving miner rewards from 6.25 BTC to 3.125 BTC.
Effects of the Halving Event
The halving event has led to a significant decrease in the share of the total BTC volume coming from miners. This is likely due to a lower inflation rate, which currently stands at 1.66%.
The reduction in miner rewards has also slowed down the rate at which new Bitcoins are added to the total supply. The current inflation rate, as noted by on-chain data provider IntoTheBlock, is approximately 1.66%.
Changes in BTC Metrics
Since the halving event, the Miner Supply Ratio of BTC has experienced a minor drop. This metric measures the proportion of new coins added to BTC’s total supply by miners. A decline in this metric indicates a decrease in the share of new coins being added to BTC’s total supply by miners.
In addition, BTC Miner Reserves have also seen a slight decline since the halving event. This metric measures the amount of coins held in miners’ wallets and indicates the reserves that miners have yet to sell.
Despite some miners selling off their coin holdings to book profits after the halving event, there has not been any significant selling activity. This is evidenced by the drop in BTC’s Miner to Exchange Flow, which measures the amount of BTC flowing from miners to exchanges. A decline in this metric suggests that miners are selling fewer coins.
The decrease in BTC’s Miner to Exchange Flow indicates that miners on the Bitcoin network have maintained a bullish outlook, despite the coin’s recent price performance.
