Halving Effects | Bitcoin Miners Are Selling Less

The most recent halving took place on April 19th of this year. The event was highly anticipated, and excitement about it led to Bitcoin reaching a new all-time high ahead of the halving.

While the excitement has died down somewhat, we'd like to draw your attention to the fact that the halving is a matter of fundamentals (not hype), and we can measure the impact of it using on-chain data.

The current yearly inflation rate for BTC is 1.66%, which puts it at a lower inflation rate than the target inflation rate for most Western countries for the first time.

The lower inflation rate means miners earn fewer rewards in BTC , theoretically decreasing selling pressure from new coins entering circulation.

If we look at the miner outflows for this year, we can observe a decrease in miner outflows starting in March. This likely has to do with miners holding on to their rewards ahead of the halving.

Following the halving, miner outflows have kept decreasing and are approaching historically low levels. As a result, the share of volume coming from miners has also decreased since the halving.

This data suggests that we're seeing the first results from the halving coming into play. We recommend keeping an eye on this indicator and on the total miner reserves, also available trough Tradingview.