A intriguing tendency among miners is emerging as the much awaited April 19 Bitcoin halving event draws near. In contrast to the pre-halving sell-offs that occurred prior to the 2020 and 2016 halvings, miners accumulate.
Users Gathering Bitcoin
One analyst writes in a post on X that the total amount of Bitcoin that miners have held since the start of 2024 has increased by an astounding 12,100 BTC, to a total of 217,000 BTC, using statistics from CryptoQuant.
This conduct stands in sharp contrast to what took place prior to the network slashing miner payouts in 2016 and 2020. According to research, the majority of miners were then reducing their holdings in preparation for potential revenue dips following Halving.
The protocol-level halving reduces miner block rewards by half, to 3.125 BTC from 6.25 BTC at the moment. In this sense, miners would need to use more resources in order to make the same amount of money as they did during the prior age.
In light of the growing rivalry, some small miners have a tendency to liquidate and leave the industry. To stay competitive, some major miners with greater resources might seize the chance to sell coins and purchase more productive miners.
According to the graph, miners kept selling off their Bitcoin after its halving in 2016. Nevertheless, prices increased significantly in 2017 and peaked at $20,000 before dropping off in 2018 despite growing selling pressure.
Following the 2017 ICO frenzy, Bitcoin and cryptocurrency gained popularity. This led to a more liquid market and more participation from miners, as evidenced by the rising hash rate after the halving.
In contrast to what happened in 2016, the 2020 halving was revolutionary. The figure illustrates how miners adopted a holding strategy, quickly collecting coins as Bitcoin values shot up to all-time highs. Given the present accumulation tendency, miners could be expecting a similar price increase.
Is Bitcoin Prepared for a $100,000 Bull Run?
This change in mining activity may have a favorable effect on prices. Despite the present downturn, miners are confident in their ability to modify and become more efficient after April 19.
All things considered, a decrease in the daily emissions of BTC following Halving, along with miners hoarding coins and institutions flooding the market with spot Bitcoin exchange-traded funds (ETFs), might drive prices even higher.
We don't yet know how quickly costs will increase. After losses on April 13, bitcoin is still in a bear market and is subject to strong selling pressure. Possible base for further rises towards $100,000 would be a strong breakout over the present range of $74,000.
April 2024, Cryptoniteuae