BTC Held By Miners Drops To Near Three-Year Low
Miners appear to be positioning for the revenue cuts they will experience in two months, when the halving occurs.
Miners have been selling large amounts of bitcoin in recent weeks, taking advantage of the higher prices brought by the ETFs approvals, likely in an attempt to upgrade their hardware ahead of April's Halving.
Data provided by CryptoQuant shows that miners' BTC reserves have fallen to their lowest point in 32 months.
Miners play a crucial role in impacting the price of bitcoin. These are typically sophisticated players with a deep understanding of the Bitcoin ecosystem. Since ETFs were launched almost a month ago, miners have been selling, offloading a billion dollars worth of BTC in just the day after launch.
The sell-off comes at a time when miners will be actively seeking to position for the Halving, which is due to take place in a little over two months. The cut in block rewards is expected to make life difficult for a number of miners who are operating at the edge of profitability.
With prices hitting a two-year high in January, it was the ideal time for miners to bank some funds to upgrade their rigs, ensuring maximum efficiency so they will be able to survive the incoming revenue drop.
All-Time High Prices Needed
Should prices increase fast, this will not be as critical. However, markets are inherently unpredictable, and there are no guarantees for the timescale in which bitcoin will rally. Those miners currently just breaking even would need to see prices in excess of the all-time high ($69,000) to remain in business after the halving.
While some miners are selling, data suggests this is not evenly dispersed around the world. Publicly-traded US miners, in particular, appear to be holding in anticipation of higher prices.
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