Analysts at blockchain firm Kaiko say Bitcoin’s recent halving might soon force miners to sell their crypto holdings.
Bitcoin miners are starting to feel pressure as daily average network fees, which spiked after the halving, have begun to decline, according to analysts at Kaiko.
In a recent research report, analysts at the Paris-headquartered firm noted that daily average network fees surged following the halving, providing some relief for Bitcoin miners. However, these fees have since “come down as the initial rush of users to the Runes protocol cooled off,” the firm says.
Historically, the halving event triggers selling among Bitcoin miners, as creating new blocks involves substantial costs, which they need to cover by selling their crypto holdings. Although the recent surge in average network fees partially mitigated the need for selling, Kaiko says the recent decline in fees “could lead to selling pressure from miners.”
According to CoinShares head of research James Butterfill, Bitcoin miners are “beginning to turn off unprofitable rigs” to manage expenses instead of selling Bitcoin. However, the timing of any potential selling remains uncertain.
Kaiko notes that miners typically classify BTC holdings as “current assets” on their balance sheets, as they can sell holdings to finance operating expenses. For instance, Marathon Digital holds 17,631 BTC valued at over $1.1 billion, while Riot Platforms holds another 8,872 BTC worth over $500 million, the analysts point out, adding that “if miners were forced to sell even a fraction of their holdings over the coming month this would have a negative impact on markets.”