- Miners are better positioned for this halving due to the large gains in bitcoin in the last six months, the report said.
- If history repeats itself, bitcoin will enjoy a strong rally after the event, the broker said.
- A potential increase in network fees could offset the impact of reduced rewards, Benchmark noted.
Every four years, the growth of bitcoin supply is reduced by half during this event, which is anticipated to take place later tonight or early tomorrow (UTC).
According to Haris Basit, the strategic head of Bitdeer Technologies (BTDR), an influential figure in the Bitcoin mining industry, the current surge in Bitcoin’s value may provide a reprieve for several less productive miners within the Bitcoin network in the short term.
In simpler terms, Basit expressed that Bitcoin’s recent surge in value might lessen the impact of the halving event on retiring old mining rigs and decreasing the overall network hash rate.
Many publicly traded Bitcoin mining companies have revealed or implemented strategies to expand their electricity and hashrate capabilities in response to decreased revenue and profit margins, according to Benchmark analyst Mark Palmer. He added that most of these miners’ stocks have declined year-to-date despite a significant 46% increase in Bitcoin’s value during the same period, due to uncertainties surrounding the upcoming halving event.
If past trends hold true, the economic effect of Bitcoin’s halving on miners might be softened over the long term by a robust price increase in the cryptocurrency’s market during the ensuing months. (Palmer’s original statement: “The impact of the halving on bitcoin miners’ economics could be more offset over time if history repeats and a strong rally in the price of the cryptocurrency occurs during the months following the event.”)
The broker pointed out that an upward adjustment in network charges might lessen the effect of smaller reward payments for miners.
The impact of a cryptocurrency undergoing a halving could be intensified by the simultaneous price drop caused by the introduction of approved spot bitcoin ETFs in the US market in January. We anticipate that the investment in these ETFs from institutions will significantly increase once they start adopting it.
Read more: Bitcoin Halving Partially Priced In With No Big Rally Expected Afterward: Deutsche Bank
Read More
- ACT PREDICTION. ACT cryptocurrency
- W PREDICTION. W cryptocurrency
- PENDLE PREDICTION. PENDLE cryptocurrency
- Hades Tier List: Fans Weigh In on the Best Characters and Their Unconventional Love Lives
- Smash or Pass: Analyzing the Hades Character Tier List Fun
- Sim Racing Setup Showcase: Community Reactions and Insights
- Understanding Movement Speed in Valorant: Knife vs. Abilities
- Why Destiny 2 Players Find the Pale Heart Lost Sectors Unenjoyable: A Deep Dive
- NBA 2K25 Review: NBA 2K25 review: A small step forward but not a slam dunk
- How to Handle Smurfs in Valorant: A Guide from the Community
2024-04-19 12:02