The Bitcoin halving expected to occur in April 2024 will cut the rewards received by miners in half, pushing them to financially reassess their mining activities. According to recent reports by Grayscale analysts, although the effects of this halving on the Bitcoin price are not certain, similar past events have led to price increases.
However, analysts who point out that similar mechanisms in other cryptocurrencies like Litecoin have not always led to price increases emphasized that, in addition to the impact of scarcity on price, other factors are also important.
For Bitcoin miners, this halving poses a challenge due to the decrease in block rewards, which constitute a significant portion of their income.
In this period of increased mining difficulty, miners need to take steps to diversify their sources of income. In this context, the report indicates that miners are resorting to methods such as coin sales and capital increases to create liquidity and prepare for the upcoming change.
Bitcoin ETFs in the US have led to record levels of BTC outflows from miner wallets to exchanges. According to a Bitfinex report, miners who moved 10,000 Bitcoins in the past month have turned to selling. These and similar developments show that miners have already started selling their tokens.
In addition, the report states that Ordinal activities on the Bitcoin chain have become a new and significant source of income for miners. So far, more than $200 million in revenue has been generated from Ordinal transaction fees, and about 20% of miners’ incomes are derived from these sources. This situation becomes an alternative income gateway for miners to balance the decrease in block rewards after the halving.