Bitcoin miner will face a significant revenue crunch after Bitcoin halving and are likely to offload their BTC holdings. $10 billion in losses expected.

STORY HIGHLIGHTS

• Satoshi-era whale moves $3.28 million worth of Bitcoins to Coinbase.
• Bitcoin miners could trigger a sell-off to meet the revenue slump post the Bitcoin halving.
• The Bitcoin mining industry expected to lose $10 billion after bitcoin halving.

With just four days left into Bitcoin halving, Bitcoin miners have turned active once again. In the latest development, a dormant Bitcoin miner wallet has turned active after nearly 14 years. Reports suggest that BTC miners might be gearing up for a sell-off after the halving event.

Bitcoin Miner Transfers 50 BTC to Coinbase

In a surprising development, a long-dormant miner wallet has resurfaced after nearly 14 years of inactivity. The wallet, which earned 50 BTC from mining on April 23, 2010, recently deposited the entirety of its holdings—equivalent to approximately $3.28 million—to the cryptocurrency exchange Coinbase.
This revelation has sparked the interest of the crypto community, as the miner had held onto the BTC acquired over a decade ago until now. The wallet’s address, 15sxzZ4QSaoiMo5KYH9ab4xQj34yeJmKgb, has attracted attention as analysts and enthusiasts speculate about the motives behind this sudden movement of funds.

In a research report last week, Markus Thielen, CEO of 10x Research, stated that Bitcoin miners are gearing up to sell $5 billion worth of their Bitcoin holdings after the upcoming halving event.

Following the Bitcoin halving event, miners are likely to commence selling portions of their holdings due to increased mining difficulty and financial requirements.
According to projections by 10x Research, a six-month period of stagnation is anticipated post the Bitcoin halving in April. This phase could pose significant challenges for the crypto market as “Bitcoin miners gear up to liquidate substantial portions of their BTC reserves.”
Thielen suggests that the accumulation of inventories during the bullish market sentiment in recent months disrupts the market dynamics. Traditionally, leading up to the Bitcoin halving event, expected around April 20, miners tend to amass their BTC holdings, resulting in a supply-demand imbalance and subsequent upward pressure on Bitcoin prices.

Bitcoin Halving: Sell The News Event?

Several market analysts believe that the upcoming Bitcoin halving event could be a sell-the-news event, especially with the dumping by the Bitcoin miners. Furthermore, recent research reports suggest that the Bitcoin mining industry could face losses to the tune of $10 billion following the halving event.
The upcoming Bitcoin halving will reduce the miner rewards from 6.25 BTC now, to 3.125 BTC post halving. On the other hand, the mining costs will also rise significantly for Bitcoin miners. It will be interesting to see whether the expected surge in the Bitcoin price compensates for the mining losses.

Breaking: Germany’s Biggest Federal Bank Partners Bitpanda To Offer Crypto Custody

Germany's largest federal bank LBBW partners with Bitpanda to offer crypto custody to its clients starting in the second half of 2024.

STORY HIGHLIGHTS

• Germany’s biggest federal bank Landesbank Baden-Württemberg (LBBW) partners with crypto exchange Bitpanda.
• LBBW with an "Investment-as-a-Service" infrastructure from Bitpanda to offer crypto custody to their clients.
• Jürgen Harengel, COO Corporate Bank at LBBW, said "The demand from our corporate customers for digital assets is increasing."

The wave of crypto adoption by TradFi continues to pick pace globally, especially amid excitement surrounding Bitcoin halving. In a major breakthrough, Germany’s biggest federal bank Landesbank Baden-Württemberg (LBBW) also revealed plans to offer crypto custody services in partnership with crypto exchange Bitpanda.

Germany’s Top Bank and Bitpanda to Offer Crypto Custody

Landesbank Baden-Württemberg, Germany’s biggest federal bank, and the Bitpanda crypto exchange to provide cryptocurrency custody services in the second half of 2024, reported Bloomberg.
Germany’s top federal bank and the largest crypto exchange in the country coming together is a major development for crypto adoption ahead MiCA regulation. Austrian unicorn company Bitpanda received a crypto license from Germany’s financial regulator (BaFin) in November 2022 to become one of the few companies to get crypto custody and proprietary trading license.
LBBW and Bitpanda will offer crypto custody to institutional and corporate clients, according to a statement by the companies on April 15. LBBW is owned by some of Germany’s savings banks such as the state of Baden-Wuerttemberg and the city of Stuttgart. It has nearly €333 billion ($355 billion) in assets.
“The demand from our corporate customers for digital assets is increasing. We are convinced that crypto assets will establish themselves as a building block for further business models. With this cooperation, we are creating the technical and regulatory basis at an early stage to best support the individual crypto strategies of our corporate customers,” said Jürgen Harengel, managing director of corporate banking at LBBW.
Also Read: Solana Releases v1.17.31 Mainnet Update to Fix Congestion, Price & OI Jumps

Banks’ Active Participation in Crypto

German banks and asset managers’ interest in crypto assets are increasingly active ahead of EU’s MiCA regulations taking effect later this year.
In March, Germany stock exchange firm Deutsche Boerse launched a fully regulated crypto trading platform Deutsche Boerse Digital Exchange (DBDX). The aim is to offer a fully regulated and secure environment for institutional trading, settlement, and custody for this digital asset class.
Also, Germany has massive demand for Bitcoin and altcoins from retail and institutional investors. Electronic securities trading platform Xetra has been offering crypto ETP and ETN for companies such as 21Shares and WisdomTree.
A recent research by KPMG shows German investors are actively buying crypto assets as trust returns ahead rise in Bitcoin price.