Miners' BTC Reserves Plummet as Halving Cuts Block Reward

Bitcoin's annual supply growth has hit a record low after the latest halving, but what does this mean for miners and the broader market?

The block reward, or the new $BTC issued to miners with each block they add to the network, was cut in half as part of the halving. This slows down the rate at which new Bitcoin enters circulation, leading to a predictable path towards the supply cap of 21 million coins.

According to CryptoQuant data, miner reserves have been declining over time, with approximately 1.19 million $BTC held in wallets linked to miners. This has led to several spikes in withdrawal transactions since 2024, potentially increasing the available supply and creating short-term sell pressure.

However, not all withdrawals are sold on exchanges - some may be moved between miner wallets, used as collateral, or completed privately. While this is something for traders to keep an eye on, it's essential to note that Bitcoin's long-term scarcity remains unaffected by these developments.