That’s a significant drop in miner holdings. Glassnode data suggests Bitcoin miners have been selling off their BTC throughout 2024. There could be a few reasons for this:
- Reduced block rewards: The Bitcoin halving in April 2024 cut miner rewards in half, impacting their income. Selling BTC may be a way to cover operational costs.
- Bitcoin price volatility: If miners are concerned about the price of Bitcoin, they might sell to lock in profits or avoid potential losses.
It’s important to note that not all miners are selling. Some may be holding onto their BTC for the long term.
Here are some additional points to consider:
- The rate of decline may be accelerating. Recent data shows a steeper drop in miner balances compared to earlier in the year.
- This trend is similar to what happened after previous halving events. Miners often sell BTC in the months following a halving.
