7 months ago
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As the highly anticipated Bitcoin halving event approaches on April 19, a fascinating trend is emerging among miners. Unlike the pre-halving sell-offs witnessed before the Halvings of 2016 and 2020, miners accumulate, going against previous trends.
Miners Accumulating Bitcoin
In a post on X, one analyst, while citing CryptoQuant data, notes that since the beginning of 2024, the total BTC balance held by miners has grown by a staggering 12,100 BTC, reaching a total of 217,000 BTC.
This behavior starkly contrasts with what happened in 2016 and 2020 before the network slashed miner rewards. Then, reading from data, most miners were sizing down their holdings in anticipation of possible revenue slumps post-Halving.
Halving is set at the protocol level and slashes miner block rewards by half, currently from 6.25 BTC to 3.125 BTC. This way, miners would have to expend more resources to generate the same revenue they would have in the previous epoch.
Accordingly, some small miners tend to liquidate and exit in anticipation of the rising competition. However, some large miners with more resources would take the opportunity to sell coins and buy more efficient miners to stay competitive.
Bitcoin miner balance | Source: Analyst on X
From the chart, miners continued offloading their BTC post-halving in 2016. However, even with increasing selling pressure, prices rose sharply in 2017, peaking at $20,000 before cooling off in 2018.
As Bitcoin and crypto found adoption following the ICO mania of 2017, the scene became more liquid, and more miners participated, as seen from the rising hash rate post-halving.
Unlike events in 2016, the 2020 halving marked a turning point. As Bitcoin prices skyrocketed towards record highs, miners adopted a holding strategy, rapidly accumulating coins, as the chart shows. This current accumulation trend suggests miners may anticipate a similar price surge.
Is BTC Ready For A Bull Run To $100,000?
This shift in miner behavior could positively impact prices. Miners, expected to readjust and become more efficient after April 19, are holding a vote of confidence even amid the current slump.
Overall, a reduction in daily BTC emissions post-Halving, coupled with miners accumulating and institutions pouring in via spot Bitcoin exchange-traded funds (ETFs), could propel prices even higher.
The pace at which prices rise is yet to be seen. Bitcoin is bearish and remains under immense selling pressure following losses on April 13. A bullish breakout above the current range of $74,000 might be the base for more gains towards $100,000.
Feature image from Canva, chart from TradingView
