Miners have been consistently selling Bitcoin since the beginning of this year, upgrading hardware to cope with the impact of the halving.
Miners have been steadily selling BTC recently to ensure profitability post-halving, according to crypto venture firm Wintermute. This measure is taken to mitigate the impact on revenue while also capitalizing on the rising coin prices.
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Bitcoin Miners Continue to Sell BTC
According to data from CoinMetrics, the amount of Bitcoin held by miners has decreased by about 27,000 coins since the beginning of this year, currently dropping to 1.794 million coins. This is the lowest level in three years, clearly indicating that miners are implementing new strategies to cope with the Bitcoin halving.
Miners have been steadily selling Bitcoin, and the proceeds may be used for capital investment. Wintermute indicates that this shift in strategy may be in response to the impact of reduced rewards from Bitcoin mining on April 20. Miners are reinvesting their earnings in more mining machines to increase their future mining income.
Why the Difference in Accumulation Strategy from the Last Halving?
Unlike the previous halving in 2020, miners at that time adopted a strategy of accumulation, steadily accumulating about 25,000 BTC within five months, creating a stark contrast in strategies.
Wintermute believes this is due to the recent continuous rise in Bitcoin prices, even reaching new highs, which has altered miners' market strategies. Bitcoin has surged by 63% so far this year, allowing miners to profit at a higher price, thus preparing for the halving impact.
Additionally, in terms of US dollars, the value of Bitcoin held by miners is still close to its all-time high, at around $124 billion. This selling off seems to be a proper measure for profit-taking and operational upgrades.
