Bitrabo Editorial
Bitcoin miners have been experiencing a steady drop in reserves following the halving event in April. Recent data indicates a sharp decline to the lowest levels in three years, showcasing significant selling activity by miners amidst Bitcoin price fluctuations and market instability.
Decline in Bitcoin Miner Holdings Reaches New Milestone
Prior to the Bitcoin halving on April 20, experts had predicted challenges for miners as block rewards halved. This foresight has materialized as BTC miner holdings have seen a substantial decrease in recent months.
According to CryptoQuant, Bitcoin miners’ reserves have fallen from 1.84 million BTC in the previous year to around 1.80 million BTC currently, hitting their lowest point since the early days of Bitcoin. The data also reveals a 50% decline from previous highs, signaling heightened selling pressure from miners.
Operational costs for BTC mining are rising due to increasing electricity prices and diminishing mining rewards. The necessity for more advanced hardware is becoming urgent to cope with the complexities of BTC mining.
Bloomberg reported that BTC miners could face a $10 billion annual revenue loss due to the effects of the halving cycle. This pessimistic outlook is compounded as BTC mining hash rates hit lows not seen in three years after a significant crash in 2021.
Aside from miner reserves, the price of Bitcoin experienced significant drops post-halving in April, with a notable decrease in trading volume hinting at reduced investor demand.
Currently, BTC has surged past $71,000, partly attributed to increased investor inflows into Spot Bitcoin ETFs and the positive impact of Ethereum Spot ETF approvals on BTC price, indicating a growing interest from investors.
BTC Miners Embrace Artificial Intelligence (AI)
Amid dwindling reserves, Bitcoin miners are exploring Artificial Intelligence (AI) as a revenue-generating avenue. Core Scientific, a major BTC mining entity, announced a long-term collaboration with Core Weave, a cloud provider and AI hyperscaler, with plans to generate significant revenue over the next 12 years.