Bitcoin miners start dumping coins ahead of upcoming halving

The Bitcoin ecosystem is preparing for the fourth halving event, which is expected to occur within the next two weeks. Bitcoin miners have begun dumping their cryptocurrency holdings on Buslk amid the impending major developments in the ecosystem. There are several factors behind the rush to sell Bitcoin in the mining community, including the intention to take advantage of rising Bitcoin prices in the context of the upcoming Bitcoin halving.

Daily sales of BTC tokens by miners over the counter (OTC) have reached 160,000, which is the highest level since August 2023. The data was disclosed by on-chain analytics company CryptoQuant.

In a series of updates published on As of April 8, the average BTC transaction fee (the fee paid by users to miners for validating transactions on the blockchain) was $2.864 (roughly Rs. 240).

The Bitcoin halving is a pre-programmed, automated event carried out by its anonymous founder, who goes by the pseudonym Satoshi Nakamoto. Through this process, Satoshi wanted to ensure that the addition of new tokens into circulation slowed down, thereby maintaining the uniqueness quotient and value point of the BTC token.

The Bitcoin halving is automatically triggered every 210,000 blocks mined on the Bitcoin blockchain. After halving, the block rewards miners receive are cut in half, reducing their incentive to mine Bitcoin blocks and slowing down the rate at which new coins are added.

After the upcoming halving event, miner rewards will drop from 6.25 BTC per block to 3.125 BTC.

In a conversation with Gadgets360, Parth Chaturvedi, head of investments at CoinSwitch Ventures, highlighted that the computing power required to mine blocks and the associated power supply and power infrastructure has increased fivefold since the last halving in 2020. To ensure they are funded by selling BTC tokens, miners want to ensure they can maintain their mining operations amid reduced rewards and revenue.

“Generally speaking, after the halving, some small miners will become uncompetitive and end up being merged or acquired by larger miners,” Chaturvedi said. “We expect that unprofitable miners will If it goes bankrupt after the halving, the industry will usher in a wave of consolidation.”

Bitcoin miners also face headwinds from lower transaction fees and increased competition in mining. Crypto quantificationwhich is another reason why miners are selling most of their BTC holdings to retain profits, as there are only 17 days left until Bitcoin’s fourth halving.

In March, BTC price crossed the $73,000 (approximately Rs. 6.08 million) mark, setting a new all-time high (ATH) after November 2021. The previous price (ATH) was higher than $68,000 (approximately Rs. 56.60 lakh). As of Monday, March 8, Bitcoin was trading between $66,570 (roughly Rs. 5.54 million) and $70,000 (roughly Rs. 5.82 million).