Key Points
- Bitcoin miner-to-exchange activity has increased ahead of the next halving event in mid-April.
- The daily flow of Bitcoin from miners’ wallets to exchanges has risen by over 1000% in the last seven days.
Bitcoin miner-to-exchange activity has seen a surge before the next halving event scheduled for mid-April, according to on-chain data.
This event, which is pre-programmed, reduces the reward for mining a block by half, with the goal of controlling inflation by limiting the issuance of new Bitcoin.
Declining BTC Miner Reserve
Data from CryptoQuant reveals that the Bitcoin miner reserve has been gradually decreasing since February 26. This metric tracks the quantity of coins in miners’ wallets.
A decrease in its value indicates that miners are selling their coins. The Bitcoin miner reserve, which was at 2 million BTC at the time of writing, has dropped by nearly 2% in the past two weeks.
Increased Miner-to-Exchange Activity
A consistent flow of Bitcoin from miners’ wallets to exchanges has marked March so far, according to CryptoQuant analyst Joao Wedson.
Increased miner-to-exchange activity on the Bitcoin network suggests that miners are selling more Bitcoin than they are mining. The daily flow of Bitcoin from miners’ wallets to exchanges has increased by over 1000% in the past week.
Wedson attributes this rise to the upcoming halving event. As the mining rewards are expected to decrease, Bitcoin miners are currently under pressure to sell their holdings and make a profit before mining expenses exceed rewards.
At press time, Bitcoin was priced at $68,369. On March 8, it briefly traded above the $70,000 price mark, setting a new all-time high, according to CoinMarketCap’s data.
The price jump above $70,000 resulted in a liquidation of short positions worth $58 million, as per Coinglass’ data, with the Futures market recording mostly positive Funding Rates. On the same day, long liquidations amounted to $50 million.
