The cryptocurrency community is eagerly anticipating the fourth Bitcoin halving as the countdown begins for this significant event. Mining blocks fluctuate and are probabilistic; therefore, the halving date at block height 840,000 is unknown. However, the average block duration suggests a half in 100 days as per Glassnode.
Bitcoin Trades Sideways Below $43,000 as Market Awaits Bitcoin Halving Event
Bitcoin is trading horizontally below $43,000, indicating a lack of direction despite the halving event’s anticipation. Bitcoin’s price dropped roughly 8% last week due to the Bitcoin spot Exchange Traded Fund (ETF)‘s lack of support after approval, causing “altcoin season.” The Bitcoin halving event may affect Bitcoin prices. Miners have already started to sell their BTC in large bulks.
Market watchers say Bitcoin half occurrences drive price movements. Historical data links halving incidences to price hikes. After the fourth halving in April, the upcoming event will reduce BTC block mining incentives to 3.125 BTC. Miners will receive half the current reward for validating Bitcoin blockchain transactions.
Famous cryptocurrency miners are preparing for the 2024 Bitcoin halving event. Asset manager CoinShares found Riot, TeraWulf, and CleanSpark ready for the crisis. Bitcoin miners will receive 50% less block rewards in April 2024 during the Bitcoin halving event. Miners face unique hurdles from this deflationary policy’s network supply regulation. CoinShares’ study sheds light on miners’ post-halving prospects.
Bitcoin Price at $40,000 Critical for Post-Halving Profitability
The third quarter of 2023 saw Bitcoin manufacturing costs of $16,800 and cash costs of $25,000. These figures should rise to $27,900 and $37,800. Experts estimate cryptocurrency miners’ average production cost after the halving will be $37,856. The loss in incentives and the requirement for miners to grow to stay profitable will raise expenses.
CoinShares’ study assumes Bitcoin will reach $40,000 after the halving. Mining corporations may deplete their financial and operational reserves at the barrier. Riot’s cost structure and financial strength seem to make it well-equipped to withstand the halving. Riot may struggle if Bitcoin falls below $40,000.
The analysis predicts that only Bitfarms, Iris, CleanSpark, TeraWulf, and Cormint will remain profitable if Bitcoin values drop below $40,000. Mining companies are optimizing energy use to improve fleet efficiency, but the direct cost structure remains a concern.
As the fourth Bitcoin halving approaches, the sector faces technological breakthroughs, market instability, and the pursuit of profitability. The halving event will undoubtedly impact cryptocurrencies.
