Onchain Highlights
DEFINITION: Balances in miner wallets are the total supply held in miner addresses.
Bitcoin miner balances have shown significant shifts in recent months. The balance in miner wallets has seen a steady decline since late 2023, reaching lows not seen in years, reflecting miners’ responses to the recent Bitcoin halving in April 2024.
According to Glassnode data, the miner balance dropped from around 1.84 million BTC in early 2023 to close to 1.8 million BTC by May 2024. This reduction is indicative of increased sell-offs by miners to cover operational costs, likely exacerbated by the reduced block rewards post-halving.
CryptoSlate reported that transaction fees had surged post-halving, constituting up to 75% of miner revenue, as miners adapt to lower block rewards by relying more on transaction fees. This shift illustrates a fundamental change in miners’ revenue streams and could influence their future strategies.
Overall, the evolving dynamics in miner balances and revenue composition reflect the broader impacts of the Bitcoin halving, compelling miners to adapt their strategies to sustain profitability in a changing economic environment​​.
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