Bitcoin miners reserves since the April halving, they have seen a steady decline over the past few months. The latest data shows a massive decline to 3-year lows, signaling intensity sales pressure from miners in the face of BTC price fluctuations and market volatility.
Bitcoin Miner Holds Fall to Fresh Lows
Before Bitcoin halving event April 20, market experts predicted potential challenges for Bitcoin miners as block rewards will be halved. This prediction turns out to be true because BTC mining holdings have seen a significant decline over the past few months.
According to the CryptoQuant analytics platform, Bitcoin miners they have reserves fallen from 1.84 million BTC in the previous year to approximately 1.80 million BTC currently. This decline suggests that BTC mining resources are currently at their lowest level since the Satoshi Bitcoin era, approximately 14 years ago.
CryptoQuant also revealed that BTC miners’ reserves have dropped by 50% from previous highs, indicating increased sales volume from miners. This selling pressure is likely driven by increased mining operating costs as investors continue to sell off their Bitcoin holdings to acquire better mining equipment to remain financially stable.
BTC cost mining intensifies as electricity prices escalate and mining wages decrease. The need for more capable equipment to keep pace with changes is also becoming more and more urgent complexities associated with BTC mining.
Moreover, Bloomberg reported that BTC miners are maintaining lose Revenues of around $10 billion per year, driven by the far-reaching effects of the Bitcoin halving cycle. This cynical outlook is also reinforced because BTC mining hash rate hit a three-year low after the biggest crash since 2021.
Excluding mining reserves, the price of Bitcoin was observed huge drops after halving in April. During this time, trading volume has dropped significantly, suggesting a decline in investor demand and interest in the cryptocurrency.
Currently BTC appears to be steadily approaching an all-time high, exceeded the $71,000 mark earlier this week. The unexpected momentum was partially attributed to increased investor inflows into Spot Bitcoin ETFs. The approval of Ethereum Spot ETFs also had a positive impact on the BTC price, indicating growing investor interest in the cryptocurrency.
BTC miners are turning to artificial intelligence
Among Bitcoin miners dwindling reserves, many people are now turning to artificial intelligence (AI) to generate more revenue. Lately Scientific coreBTC mining titan, announced 12 years of cooperation with Core Weave, a specialized provider of cloud solutions and AI hyperscaler.
Core Scientific has revealed plans to support CoreWeave to expand the relationship between the two companies in hopes of generating more than $3.5 million in revenue over the next 12 years.
