Bitcoin Halving Sparks Miner Reserve Decline

The Bitcoin network has been experiencing a steady decline in its annual supply inflation, which has dropped to 0.88% following the latest halving event.

However, this slowdown in supply growth may not necessarily translate to a decrease in miner activity, as data from CryptoQuant shows that reserves held by miners have fallen to approximately 1.19 million BTC.

This decline in miner holdings is likely due to the reduced block reward following each halving event, which forces less-efficient operators to draw on their BTC reserves to cover expenses such as electricity and equipment costs.

While some of these withdrawn coins may be sold, it's essential for traders to keep an eye on this trend, as large-scale withdrawals could increase the available supply and create short-term sell pressure.