Bitcoin Miners Drive Record Transaction Fees Amid Pre-Halving Asset Sell-off

By: Eliza Bennet

The recent debut of the Runes protocol and the recent Bitcoin halving event have spurred dramatic shifts in the market, driving Bitcoin transaction fees to record highs and sending the cryptocurrency's price spiralling below the $60,000 mark. The halving event, normally expected to shrink miner revenues, has been overshadowed by Casey Rodarmor's Runes protocol, which triggered substantial activity on the Bitcoin blockchain.

Simultaneously, a peculiar trend among Bitcoin miners came to light in the lead-up to the halving event, as they began offloading their Bitcoin holdings. The total Bitcoin reserves held by miners reached a 12-year low, dipping below the 1.9 million mark as outflows from miner wallets continued. At the time of the halving, miner reserves stood at 1.818 million BTC, signaling that miners have been net sellers in the buildup to the halving.

The sell-off by miners and resultant flood of BTC into the market contributed to the drastic price dip, with the price hovering between the $65k and $70k before the crash to $60k. However, the post-halving period saw the Bitcoin price rebound to $64,978, climbing 8% after bouncing off the $60k support. Although the halving sliced miner revenues in half, the expected market response and potential price rise may compensate for these losses in the coming months.