Bitcoin miners feel pressure of slashed rewards post-halving

Analysts at blockchain firm Kaiko say Bitcoin’s latest halving may soon force miners to sell their crypto assets.

According to analysts at Kaiko, Bitcoin miners are starting to feel the pressure as average daily network fees, which rose after the halving, begin to fall.

In a recent research report, analysts at the Paris-based firm noted that average daily network fees increased following the halving, providing some relief for Bitcoin miners. However, the firm says that “those fees have decreased since the initial influx of users into the Runes protocol has cooled.”

Average daily fees on the Bitcoin network | Source: Kaiko

Historically, the halving event triggers selling among Bitcoin miners; because creating new blocks involves significant costs that they must cover by selling crypto assets. Although the recent increase in average network fees has partially reduced the need for sales, Kaiko says the recent decrease in fees “could lead to selling pressure on miners.”

Bitcoin miners are “starting to shut down unprofitable platforms” to manage expenses rather than selling Bitcoin, according to James Butterfill, head of research at CoinShares. However, the timing of the potential sale remains uncertain.

Kaiko notes that miners often classify BTC assets as “current assets” on their balance sheets because they can sell assets to fund operating expenses. For example, Marathon Digital has 17,631 BTC worth over $1.1 billion, while Riot Platforms has another 8,872 BTC worth over $500 million. Analysts add: “If miners were forced to sell even a portion of their holdings next month, this would negatively impact the markets.”