Bitcoin's Annual Supply Inflation Plummets to 0.88% Amid Halving

Bitcoin's annual supply inflation has fallen to 0.88%, a significant drop due to the block reward halving that occurs every four years.

The block reward is cut in half, slowing down the rate at which new Bitcoin enters circulation, and this reduction affects miners who secure the network by verifying transactions and adding new blocks.

Miner reserves have dropped to 1.19 million BTC as withdrawals rose across the board, with several spikes since 2024.

While not all withdrawn coins are sold, shrinking rewards put miners under strain, leading them to draw on their BTC reserves to cover expenses such as electricity, equipment, and maintenance costs.