Key Points
- Bitcoin miners’ holdings dropped to a 12-month low ahead of the halving event, suggesting miners sold off their coins.
- The percentage of miners’ revenue from transaction fees increased as Bitcoin network users mint fungible tokens after the Runes Protocol launch.
Bitcoin miners’ holdings hit a 12-month low before the recent halving event, as per data from IntoTheBlock. This suggests that the network’s miners may have sold their coins ahead of the halving.
The rise in coin sell-offs from Bitcoin miners before their rewards were reduced was apparent from the spike in the coin’s Miner to Exchange Flow. This metric measures the amount of Bitcoin flowing from miners to exchanges.
Increased Flow to Exchanges
When the Miner to Exchange Flow metric increases, it means miners are selling more Bitcoin than they are mining, often seen as a sign of bearish sentiment. On 19 April, miners sent 366 Bitcoin, valued at $23.45 million at current market prices, to crypto-exchanges. This was a 128% increase from the 126 Bitcoin sent to exchanges by miners on 18 April.
As of writing, affiliated miners’ wallets held 1.81 million Bitcoin. Meanwhile, as Bitcoin network users rush to mint fungible tokens following the launch of the Runes Protocol, transaction fees have significantly increased.
Revenue from Transaction Fees
The Runes Protocol, created by Bitcoin Ordinals creator Casey Rodmarmor, offers an efficient way to create new tokens on the Bitcoin network. Consequently, the percentage of miner revenue derived from fees has risen. According to data provider Messari, the reading was 15% at press time, a 50% increase in the last 24 hours.
At the same time, Bitcoin was valued at $64,262, following a minor 3% price increase in 24 hours. However, the daily trading volume declined by 8% during that period. This divergence could indicate a potential price retraction in the short term as market exhaustion begins to set in.
