Bitcoin Miner Reserves Drop to 1.90M BTC, Lowest Level in Over 14 Years
Bitcoin miner reserves have reached their lowest level in more than 14 years, falling to 1.90 million BTC as of June 19, 2024. This significant decline marks the lowest point since February 2010, reflecting a trend where miners hold less Bitcoin on their balance sheets.
Despite this reduction in Bitcoin reserves, the fiat value of these holdings remains near an all-time high, hovering around $135 billion.
Data from IntoTheBlock indicates that miner reserves fell from 1.95 million BTC at the start of the year to 1.90 million BTC by mid-June. This reduction is partly attributed to the Bitcoin halving event on April 20, 2024, which cut mining rewards from 6.25 BTC to 3.125 BTC.
Lucas Outumuro, head of research at IntoTheBlock, explained the trend:
“Miners are expected to hold less Bitcoin over time as the halving pressures their margins.”
The halving event occurs approximately every four years, significantly impacting miners’ operations by reducing their Bitcoin rewards.
However, Outumuro noted that the reserve reduction rate has historically been slow, minimizing major selling pressure on the market. He stated,
“Historically, this has been at a relatively slow rate, so it hasn’t been a major selling pressure.”
Despite the decrease in Bitcoin reserves, their dollar value has remained high due to the increase in Bitcoin’s price. Sascha Grumbach, CEO of Green Mining DAO, highlighted how miners have adapted to these changes:
“Today’s miners have learned from past cycles. Gone are the days of overleveraging and holding onto too much Bitcoin, a strategy that backfired in the past.”
While the amount of Bitcoin held by miners has decreased, the market capitalization of US-listed Bitcoin mining companies has surged. As
Read more on cryptonews.com
