The fourth halving event, which is scheduled to occur in the next two weeks, has the Bitcoin ecosystem ready for action. With this impending big change in the ecosystem, bitcoin miners have started selling off large amounts of their cryptocurrency holdings.
The mining community is on a BTC selling binge, and one of the reasons for this is that they want to profit from the rising prices of BTC against the backdrop of the impending Bitcoin halving.
The number of Bitcoin that miners are selling over the counter each day has surpassed 1,60,000, the highest since August 2023. The on-chain analytics company CryptoQuant has disclosed this data.
In a thread of updates on X, the analytics company announced that Bitcoin will soon see a large decrease in transaction fees to motivate miners to profit from the continuous price surge in Bitcoin. As of April 8, users pay miners $2.864 (approximately Rs. 240) on average for having their transactions validated on the blockchain.
The anonymous creator of Bitcoin, Satoshi Nakamoto, set up the pre-programmed automatic event. Every 210,000 blocks are mined on the Bitcoin blockchain, which automatically initiates the Bitcoin halving. Following a halving, miners’ block rewards are cut in half, which lessens their motivation to mine Bitcoin blocks and slows down the addition of new tokens.
After this forthcoming halving event, miners will receive a reward of 3.125 BTC for each block instead of 6.25 BTC.
CryptoQuant reports that Bitcoin miners still face reduced transaction fees and heightened competition. As a result, miners are liquidating significant amounts of their BTC holdings to hold onto profits, particularly with the fourth Bitcoin halving just 10 days away.
The price of bitcoin broke through $72,569 in March setting a new all-time high (ATH) that would last until November 2021. As of this Monday, March 8, the price range of Bitcoin is $66,570 to $72,000.
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