Bitcoin has seen its longest miner consolidation period since trading close to $16,000.

While the effects of the fourth halving are slowly starting to show, Bitcoin miners appear to be selling less and holding on to more BTC following the recent block reward reduction.

In fact, Bitcoin is currently experiencing its longest miner consolidation and accumulation period since hitting $16,000.

BTC Miners Accumulation Continues

According to CryptoQuant’s latest analysis, the Miner Position Index (MPI) and Puell Multiple, which track miner selling activity and profitability respectively, have consolidated and accumulated for 14 consecutive days, showing a significant reduction in miner selling pressure following the halving. .

At the same time, miners are experiencing their lowest profit levels in a year. This trend suggests that they are holding BTC in anticipation of higher prices before selling.

With spot Bitcoin ​ETF flows increasing and the possibility of a fourth quarter rate cut rising, miners are likely to accumulate in preparation for a profitable selloff in the coming months.

Due to the halving, mining rewards were reduced from 6.25 BTC to 3.125 BTC. Initially, the excitement over the event and the launch of Bitcoin Rune led to an increase in miners’ profits, but things changed in May when profits dropped significantly.

Total revenue from block rewards and fees hit a new low of $26.3 million on May 1, according to data compiled by Blockchain.com. Before the halving, miners earned an average of about $6 million per day.

Prominent Bitcoin mining company Hut 8 reported a 35% decline in its own production in April. Other public mining companies such as Bitfarms, Cipher, CleanSpark, Core Scientific, Riot, and Terawulf also saw production declines of 6% to 12% over the same period.

Bitcoin network usage surges

Meanwhile, CryptoQuant CEO Joo Ki-young highlighted that the development of applications on the Bitcoin network is bringing significant changes to miners’ income streams. Management’s findings show that transaction fees now account for more than 7% of miners’ total revenue, up from just 1% two years ago.

Build an app #Bitcoin It significantly changed miners’ sources of income.

Trading fees now account for more than 7% of total revenue, up from 1% two years ago.

This trend has continued over the past four weeks and could potentially strengthen the fundamentals of the network. pic.twitter.com/YVbdmLXB5c

— Kiyoung Ki (@ki_young_ju) May 7, 2024

These changes have been made consistently over the past four weeks, potentially strengthening the fundamentals of the network. Additionally, a total of 458,000 OP RETURN codes were used on May 6, suggesting increasing utilization of the Bitcoin network for purposes beyond basic transactions, essentially indicating broader adoption.