While the effects of the halving are slowly absorbing into the market, Bitcoin miners seem to be selling less and keeping more BTC after the recent block reward reduction.
Waima, Bitcoin is currently experiencing the longest period of consolidation and accumulation of miners since it hit $16K.
Based on the latest analysis by CryptoQuant, the Miner Position Index (MPI) and the Puell Multiple, which track miner selling activity and profits, respectively, show a significant reduction in miner selling pressure after the halving, with 14 consecutive days experiencing a phase of consolidation and accumulation .
At the same time, miners experienced the lowest level of income in a year. This trend shows that they are holding on to their BTC with the expectation that the price will jump higher before selling.
As the flow of Bitcoin ETF cash increases and the possibility of a rate cut in the fourth quarter increases, miners are seen to be focusing on the accumulation phase in preparation for a profitable selloff in the coming months.
Halving this time reduced the mining reward from 6.25 BTC to 3.125 BTC. Initially, the excitement surrounding the event and the launch of Bitcoin Runes kept miners' incomes up, however this changed in May when incomes declined significantly.
Data compiled from Blockchain.com shows that total revenue from block rewards and fees reached a new low of $26.3 million on May 1. Before the halving, miners were able to generate about $6 million per day on average.
Well-known Bitcoin miner Hut 8 reported a 35% drop in its production for the month of April. Other mining companies such as Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf also experienced production declines of between 6% and 12% for the same period.
Meanwhile, CryptoQuant CEO Ki Young Ju emphasized the significant changes in miners' income streams due to the development of applications in the Bitcoin network. According to the executive's findings, transaction fees now account for more than 7% of miners' overall earnings, a significant increase from just 1% two years ago.
