Bitcoin and currencies return to the rise before the halving.. Is this the reason?
•A recent industry report highlights that mining companies are adjusting their operational strategies and increasing their holdings of the coin as the cryptocurrency market prepares for the Bitcoin halving, a quadruple event scheduled to occur around April 20.
•Data tracked by BTIG shows that mining companies such as Cleanspark (CLSK), Marathon Digital (MARA), and Riot Blockchain (RIOT) have reduced their Bitcoin sales in the first quarter of 2024. According to the “Crypto Mining Corner: #29” report, these The strategy is to increase their Bitcoin reserves in preparation for post-Helvage price movements, while also tapping into capital markets to fund their operations.
•Cleanspark reported selling roughly 13 bitcoins in the first quarter of 2024, down sharply from about 1,257 in the previous quarter. Marathon followed suit, with sales falling to about 730 from about 2,365 bitcoins, while Riot Blockchain sold 212 bitcoins, halting sales entirely in February and March.
•This trend among miners to “HODL” — a slang term for the cryptocurrency community to hold assets rather than sell — is expected to reduce the available supply of Bitcoin. The upcoming cut will halve mining rewards by 50%, further exacerbating supply constraints.
•The report also highlights the performance of Bitcoin and mining stocks, noting that despite the resilience of Bitcoin's price, mining stocks have faced downward pressure. BTIG attributes this to a shift in investor interest towards spot Bitcoin ETFs.
•Moreover, the global hash rate - a measure of the computational power used in mining operations and verifying transactions - saw a strong increase year-on-year, indicating increased mining activity as companies ramp up their operations ahead of the coin halving.
