According to Cointelegraph: Bitcoin (BTC) is significantly dependent on its pricing to make mining profitable post the upcoming halving, with its threshold set above $80,000. CryptoQuant's CEO, Ki Young Ju indicates that the costs of mining with Antminer S19 XPs will effectively double from $40,000 to $80,000 once the Bitcoin halving event transpires in mid-April.
The Bitcoin halving, a milestone that slashes miners' block reward by half every 210,000 blocks or roughly every four years, majorly influences miner behavior apart from its indirect impact on BTC's price.
After the May 2020 halving, the threshold at which mining remains profitable surged beyond $30,000. This elevation was echoed by BTC's price reaching a new all-time high of $69,000 in the same cycle.
With the forthcoming halving slated for April 20, average mining costs are predicted to exceed $80,000. To ensure mining remains a profitable venture, BTC's price must surpass this level.
Historical data suggests that post halving, BTC prices experience significant spikes. Following halving events in 2012, 2016, and 2020, Bitcoin showcased impressive price hikes of around 9,000%, 4,200%, and 683%, respectively.
Bottom line, even amidst apprehensions, miners have managed to retain profitability post-halving events. Though there is an interim phase when the BTC price lies beneath the profitability margin for miners—the aftermath invariably records price surges that exceed average mining costs.
