Bitcoin Miner Selling Pressure Mounts After Halving-Induced Revenue Drop

According to a research note by Kaiko, Bitcoin (BTC) miners may be forced to sell their coins due to decreasing revenues caused by the recent halving event. The halving, which occurred on April 19, reduced the number of new coins awarded to miners for adding new blocks to the blockchain, placing increased pressure on transaction fees and the price of Bitcoin to compensate for the loss in revenue. Initially, daily average network fees jumped after the halving, but they have since dropped as usage of the Runes protocol, which saw a surge in activity following the halving, has subsided. This decrease in fees could result in further selling pressure from miners, potentially exacerbating existing downward price risks stemming from the impending $9 billion payout to creditors of defunct exchange Mt. Gox. In addition, data from Glassnode shows that the value held in wallets associated with miners has declined by approximately 4% since the halving. Analyst Markus Thielen predicts that miners could liquidate around $5 billion worth of Bitcoin in the coming months, as the cost of producing new blocks continues to rise. In response, crypto exchange Deribit has suggested that a bear call spread strategy, which involves buying a high strike call option while simultaneously selling a lower-priced one, could be effective for navigating the potential fallout from any miner-led price declines.