Bitcoin Miner Reserves Hit Lowest Level Since 2021
Date: 2024-02-05 Author: Dima Zakharov Categories: BLOCKCHAIN
Bitcoin's Recent Plunge
Bitcoin, the world's largest cryptocurrency, had been striving to approach the $44,000 mark at the end of the previous week. Unfortunately, it failed to secure the necessary support, resulting in a downward spiral.
Bearish Trend Dominates
The prevailing bearish trend gained dominance following a wave of selling by miners. Over the past few weeks, these miners have been offloading their BTC holdings, causing concerns in the cryptocurrency market.
Historic Low in Mining Pool Reserves
According to a report by CryptoQuant, mining pool reserves have plummeted to their lowest levels since July 2021. In just the last two days, more than 14,000 bitcoins have been withdrawn from wallets linked to mining companies. Analysts emphasize that these pool reserves have been declining since August 2022.
Miners Preparing for Halving
The most significant outflow of cryptocurrency occurred on the cusp of 2023-2024. The sales initiated by miners indicate their preparation for the upcoming halving event scheduled for late April. After the halving, their earnings will decrease as the block rewards drop from 6.25 to 3.125 BTC.
Mining Profitability at a Low
In mid-January, mining profitability reached its lowest point since November of the previous year, according to research by Luxor Technologies. Despite a rebound in BTC above $42,000, the price of hash power reached $85.95 per PH/day. Bitcoin's hash rate had reached a record high of 567 EH/s but began declining towards the end of the week.
