Report: Halving Significantly Diminished Miners’ Influence on Bitcoin Price

Selling pressure from miners on the Bitcoin market has declined markedly after the third halving in May 2020. That is the conclusion reached by Arcane Research.

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According to them, the average daily mined volume by miners is 900 BTC — 0.7% of the cryptocurrency’s spot turnover. Before the halving, the figure stood at 1800 BTC or 2%.

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Experts noted that miners are \”natural sellers\” — because they must cover operating costs in fiat, they are compelled to sell part of the mined coins.

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Arcane Research noted that the amount of block rewards is now insufficient to move the market significantly.

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In addition, more sophisticated ways to finance expenses have recently emerged instead of simply selling mined coins. Most miners, however, adhere to the long-term holding strategy for digital gold, the analysts added.

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They saw another risk in this, since accumulated Bitcoin would still hit the market in case of financial distress. However, in such situations miners turn to over-the-counter services, as do all Bitcoin whales. This minimises the impact on the price, the analysts clarified.

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\”For these reasons, it appears that miners do not have a material influence on the price of Bitcoin, and halvings will continue to depress it,\” they concluded.

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In October, miners mined the first cryptocurrency for $1.72 billion, just short of the March record of $1.74 billion.