Data from CryptoQuant reveals that some miners are selling more Bitcoin as the block reward halving approaches. Sales in over-the-counter markets rose to 1,600 BTC by the end of March, the highest level since August 2023. This surge indicates that miners are adjusting their strategies in response to market conditions before the halving.
Hashrate Rises While Price Declines by 30%
The mining ecosystem for Bitcoin is facing profitability challenges due to a drop in transaction fee revenues as the halving nears. Even though daily revenues are up, the price for hashrate has fallen by around 30 percent from previous levels. This decline impacts miners' earnings per hashrate, influencing their decisions leading up to the fourth halving.
A significant increase in Bitcoin network hashrate, hitting 600 H/s, shows heightened competition among miners for BTC rewards. Hashrate, calculated in hashes per second, reflects the overall computational power securing the Bitcoin network.
Miners Getting Ready for Fourth Block Reward Halving
The upcoming fourth block reward halving on April 19, 2024, is a major event awaited worldwide. This halving will cut mining rewards by 50 percent. Miners will receive 3.125 BTC per block instead of the current 6.25 BTC, potentially leading to a 3-7 percent earnings decrease. Observers are closely monitoring how this reduction will impact the network's operations and security.
Spot-based Bitcoin exchange-traded funds (ETFs) in the US are gaining interest, serving as a hedge against market volatility. ETFs allow both institutional and individual investors to trade Bitcoin without owning the asset directly. This interest creates a more stable demand for Bitcoin, benefiting its market structure and mitigating the effects of the upcoming halving.
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