Remarkable move from critical prehistoric miners in Bitcoin

Bitcoin miners are trying to avoid a drop in their income due to the April halving, which will halve the amount of Bitcoin given as a ‘reward’ for verifying blockchain transactions. According to data compiled by CryptoQuant, the amount of unsold Bitcoin held in digital wallets by Bitcoin miners has fallen by 8,400 since the beginning of 2024 to 1.8 million. Analysts said the drop suggested miners were selling crypto assets. “Miners are selling more crypto assets to shore up their balance sheets and fund growth investments ahead of tough times in April when their Bitcoin earnings will be halved,” said Matthew Sigel, head of digital asset research at VanEck. April halving puts pressure on Bitcoin The halving, which occurs every four years, means that the amount of Bitcoin miners receive in return for running the power-hungry computers that keep the network secure by solving complex problems is reduced. In the upcoming halving, the rewards will drop from 6.25 tokens per block to 3,125 tokens. According to CryptoQuant, there has been a net movement of 3,617 Bitcoin from miner wallets to exchanges since the ETF approvals. The sell-off by miners appears to be weighing on the price of Bitcoin, which has struggled since the Bitcoin ETFs were approved on Jan. 10. “Miners appear to be selling their Bitcoin to fund the purchase of more efficient mining rigs. The reduction in earnings could particularly impact small mining operations, which could see small miners out of the game,” crypto exchange Bitfinex wrote in a recent note. While smaller mining companies with less access to capital markets are selling their Bitcoin, larger firms are using their cash reserves and creating other resources.