Decoding the Enigmatic Dance: Unraveling the Interplay between Bitcoin Miners and the $98K BTC Halving Surge

Unveiling the Miner's Realm

Before we dive into the heart of the matter, let us venture into the unexplored realm of #Bitcoin mining. At its core, mining is the robust process that births new Bitcoins and ensures the secure validation of transactions on the #blockchain The competition is fierce, as miners strive to crack complex mathematical puzzles, with the victor gaining the coveted right to add a new block to the chain. The rewards for their unwavering efforts come in the form of freshly minted Bitcoins and transaction fees.

The Halving Spectacle

In the theater of Bitcoin, the halving event takes center stage. Like a grand act of scarcity, approximately every four years, the Bitcoin network undergoes a transformative halving event. During this spectacular show, the block reward bestowed upon miners is sliced in half. The intrigue lies in the meticulously crafted design of the protocol, with the aim of capping the total Bitcoin supply at 21 million.

Economic Ripples and Tidal Shifts

The halving spectacle unleashes a cascade of economic ripples that resonate throughout the cryptocurrency landscape. The reduction in block rewards reverberates among miners, challenging the profitability of less efficient players. The consequence of this dynamic is a temporary drop in the overall hash rate, akin to a sea receding before a tidal shift. As the network's computational power dips, transaction validations may experience slight delays, ushering in a potential rise in transaction fees.

The Dance of Supply and Demand

Beyond the intricate interplay within mining circles, the halving event orchestrates a dance of supply and demand dynamics. The scarcity mechanism instigates a profound supply shock. As the new issuance of Bitcoins diminishes, the forces of supply and demand harmonize. Assuming demand remains unwavering or experiences a crescendo, the constrained supply sets the stage for a mesmerizing appreciation in BTC's market value.

A Symphony of Ascent - The Journey to $98K

Historically, the aftermath of halving events has played a symphonic crescendo, with Bitcoin's price soaring to mesmerizing heights. Amidst the grand spectacle, the irresistible allure of FOMO (Fear of Missing Out) grips investors, while institutional interest and adoption surge to captivating levels. A harmonious blend of technological innovation and rising global awareness elevates the bullish sentiment, propelling Bitcoin to an awe-inspiring crescendo of $98K and beyond.

Overture to the Future

As we bask in the euphoria of Bitcoin's meteoric rise, we pause to gaze into the crystal ball of the future. The role of #miners remains irrefutably pivotal in shaping the cryptocurrency's destiny. Yet, the grand symphony of the cryptocurrency realm also involves external factors, including regulatory overtures, macroeconomic crescendos, and paradigm-shifting technological symphonies.

Conclusion:

In this entrancing ballet of Bitcoin miners and the awe-inspiring $98K halving surge, we have unveiled the hidden threads that intertwine in this captivating narrative. The journey of Bitcoin remains a testament to the ingenuity of human invention and the voracious quest for financial freedom. As we step forward into the symphony of the future, it is with a newfound appreciation for the harmonious dance between miners, investors, and the ever-evolving world of cryptocurrencies.

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#cryptocurrency #bullmarket

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#Binance Bitcoin mining giant Marathon Digital has outpaced many of its publicly traded competitors so far this year in terms of hash rate growth, a Blockworks review of production reports indicates.

The Florida-based company has more than doubled its deployed fleet over the last six months.

Marathon had roughly 69,000 operating miners capable of producing about 7 exahashes per second (EH/s) on Jan. 1. Six months later, its fleet numbered 149,900 — yielding an operational hash rate of 17.7 EH/s — Marathon revealed in a July 5 production report.

The company had a goal of reaching 23 EH/s by mid-year, a mark Marathon CEO Fred Thiel said in a statement can be fulfilled via “final steps” at facilities in Ellendale, North Dakota, and Garden City, Texas.

“The final building in Ellendale is expected to come online this month, and final Garden City tie-in is also expected within that same period,” Thiel added.

Another company that has more than doubled its hash rate this year is New York-based Cipher Mining, which stood at 6.7 EH/s last month — up from 2.8 EH/s at the end of 2022.

Coming in with a slightly lower hash rate, but with an even higher high growth is Iris Energy, at 5.6 EH/s. The Australia-based company has brought that capacity up more than 250% since December, when it had a hash rate of 1.5 EH/s.

Iris Energy is targeting a data center capacity of 9.1 EH/s by early 2024.

The roughly 150% year-to-date hash rate growth is outpacing other notable public mining companies.

Core Scientific, a Texas-based miner currently navigating bankruptcy, reported a self-mining hash rate of 15 EH/s at the end of June, down from 15.7 EH/s in December.

Riot Platforms — also operating in Texas — reported a deployed hash rate of 10.7 EH/s as of June 30, up from 9.7 EH/s at the end of 2022, a 10% increase.

The company revealed a deal with #miners manufacturer MicroBT last month that includes an initial order of 33,280 MicroBT miners for Riot’s Corsicana facility in Texas. Those miners would add roughly 7.6 EH/s to its fleet in mid-2024, according to the company.

Meanwhile Nevada-headquartered CleanSpark’s number of deployed miners increased from 63,700 to 68,678 in the last six months, boosting its hash rate 8% from 6.2 EH/s to 6.7 EH/s over that span.

Though Hut 8 Mining had a hash rate capacity of 2.6 EH/s at the halfway point of 2023 across its Alberta facilities — just a slight increase from 2.5 EH/s six months ago, its upcoming merger with US Bitcoin Corp. may be set to spur quick growth.

The company, which first revealed the combination in February, said it expects to have a hash rate capacity of 7.5 EH/s across facilities in Alberta, New York, Nebraska and Texas post-merger.

Hive Blockchain Technologies, which intends to rebrand as soon as next week as part of a strategic shift to focus more on supporting artificial intelligence (AI) projects, had nearly 2.1 EH/s of hash rate capacity at the end of last year.

The company last reported its hash rate as of May, at which point it stood at about 3.3 EH/s.#pepe $BTC #dyor

The answer is yes, cryptocurrency mining is getting more and more difficult. This is because the mining difficulty is adjusted every 2016 blocks, or roughly every two weeks. The difficulty is adjusted based on the amount of computing power that is used to mine the cryptocurrency. If more computing power is used, the difficulty will increase. This is done to ensure that blocks are mined at a consistent rate.

There are a number of factors that contribute to the increasing difficulty of mining cryptocurrency. One factor is the growing popularity of cryptocurrencies. As more people get interested in cryptocurrencies, more people start mining them. This increases the amount of computing power that is used, which in turn increases the difficulty of mining.

Another factor contributing to the increasing difficulty of cryptocurrency mining is the development of more efficient mining hardware. As mining hardware becomes more efficient, it can mine more blocks per unit of time. This also increases the amount of computing power that is used, which in turn increases the difficulty of mining.

The increasing difficulty of cryptocurrency mining makes it more difficult for people to mine cryptocurrency. In the past, it was possible to mine cryptocurrency with a personal computer. However, as mining difficulty increases, it is now necessary to use specialized mining hardware to be profitable.

The increasing difficulty of mining cryptocurrency is also having an impact on the environment. As more and more computing power is used to mine cryptocurrency, more and more energy is used. This is a big concern, as the use of energy to mine cryptocurrency is contributing to climate change.

Despite the challenges, there are still a number of reasons why people choose to mine cryptocurrency. One reason is that it can be profitable. If the price of the cryptocurrency increases, it can offset the cost of mining. Another reason is that people believe in the future of cryptocurrencies and want to support the network.

If you are considering mining cryptocurrency, it is important to do your research and understand the risks involved. Cryptocurrency mining can be a profitable venture, but it can also be risky. You should only mine cryptocurrency if you are willing to take the risk.

#crypto2023 #crypto #cryptocurrency #blockchains #miners

A solo-mode miner was able to mine a block of Bitcoin on equipment with a processing power of 750 TH/s

On May 23, a single miner with a processing power of 750 TH/s. He successfully mined a block of Bitcoin numbered 790,958. This was reported by the administrator of Skrool pool Kon Kolivas.

The miner received a reward for the found block in the amount of 6.25 BTC (about $170,000 at the rate of $27,300).

Total hashing speed in the Bitcoin network on May 23 was 367.07 EH/s. 1 EH/s equals 1 million TH/s. Having a processing power of only 750 TH/s. This lucky miner had only 1 chance out of 489 thousand to successfully find a block.

Lucky miner – a member of the pool for solo-mining Skrool. And he will pay 2% commission (0.125 BTC, or about $3.4k). But in addition to the fee for mining the block, he receives a fee for the transaction. Which in this block was 0.249 BTC ($6.7 thousand).

With the current difficulty of mining with that kind of processing power, a miner can mine a block once every nine years on average. Meanwhile, the difficulty of mining the first cryptocurrency is growing. Since the beginning of the year, it has increased by 40%, and on May 18, the figure renewed its historical high.

Our experts note that in January 2022, a single miner with computing power of 126 TH/s mined a block of Bitcoin and received a reward of 6.25 BTC. And that was approximately $270,000 at the rate of $42,800. His odds were equal to one in 1.36 million

#BTC #crypto2023 #cryptocurrency #Binance #miners

➡️ Currently, when it comes to the main reason driving a new uptrend of the market, many people will probably refer to the concept of Bitcoin Halving...➡️ So what is Bitcoin Halving ? Why is this an important event that can help you change your position? In this article you will find out and answer!What is Bitcoin Halving?➡️ #bitcoin #halving is the process of halving the block reward of Bitcoin mining. It happens every 4 years, corresponding to every 210,000 blocks mined, until all 21 million Bitcoins are mined (expected in 2140).➡️ The next Bitcoin Halving is expected to happen in 26th April 2024. In the past, Bitcoin has gone through 3 halvings with the timelines being November 28, 2012, July 9, 2016, respectively. 12/05/2020.📌 Why Bitcoin Halving?➡️ To understand how the Bitcoin halving works, we need to understand how the Bitcoin network works. Blockchain is the core technology of Bitcoin, consisting of a set of nodes that run software and store a history of transactions on the network. Each node approves or rejects the new transaction. Transactions are aggregated into blocks, which are then approved and appended to the existing blockchain.➡️ Bitcoin mining is the process of using computers to verify and validate transactions on the blockchain. Miners must solve complex mathematical equations on the Bitcoin network to verify transactions. Once successful, they are rewarded with Bitcoins.➡️ When all 21 million Bitcoins are mined, #miners will no longer be rewarded with Bitcoins, but instead with transaction fees. This fee ensures miners remain motivated to keep the Bitcoin network running.📌 The first halving took place on November 28, 2012, when the Bitcoin price increased from $12 to $1,207 on November 28, 2013. The second halving took place on July 9, 2016, Bitcoin price from $647 rose to $18,972 on December 17, 2017. Then, within a year, the Bitcoin price dropped from that peak to $3,716 on December 17, 2018, still about 575% higher than the pre-halving price.➡️ The last halving took place on May 11, 2020, when the Bitcoin price was at $8,821 on April 14, 2021, escalated to a peak of $63,233, up 617%. After 1 month, the price reached a record of $49,504, an increase of 461%.From there, you can see that after the Bitcoin Halving in the past, the Bitcoin price has grown strongly.➡️ At the same time, you also see that after each halving, the price of Bitcoin spikes and then plummets. As an example in 2017-2018, the Bitcoin price rose to $19,000, then dropped to $3,700. The price after the halving dropped sharply, but it was still higher than the pre-halving price of $650.📌 Predicting the Future of Bitcoin After the Halving in 2024➡️ Based on past data and results from previous halving events, most investors believe that the value of Bitcoin will increase and possibly reach new ATHs after the fourth halving in 2024. ➡️ Now that the 19 millionth Bitcoin has been mined in April 2022, there are only about 2 million Bitcoins left unmined. The next Bitcoin halving is expected to take place on March 2, 2024, with the block reward for mining reduced to 3,125 BTC. However, the smaller the ratio of subsequent halving events, so the impact on its value will also decrease.⚠️ Please note that this is not investment advice.#btchalving #BTC $BTC $LTC $ETH

According to a news article, Standard Chartered has made predictions regarding the value of #bitcoin . The banking institution stated that the price of the leading cryptocurrency could potentially reach $50,000 within this year and $120,000 by the end of 2024. Standard Chartered initially published a forecast of $100,000 for Bitcoin by the end of 2024 in April, but one of their top foreign exchange analysts, Geoff Kendrick, now believes there is an additional 20% "upside" to that estimate.

The report suggests that the recent surge in Bitcoin's price may incentivize #miners to hold onto more of their supply, as their profitability per mined Bitcoin increases. This would result in a reduced net supply of Bitcoin in circulation, ultimately contributing to a further increase in its price.

Although Bitcoin has experienced an 80% price surge since the beginning of the year, its current value of slightly above $30,200 is still less than half of its peak price of $69,000 reached in November 2021.

In 2022, the #crypto sector suffered significant losses, with trillions of dollars being wiped out, primarily due to central banks raising interest rates and the collapse of various #cryptocurrency firms, including the FTX exchange. However, the article mentions that the recent collapse of several traditional-style banks has played a role in the market's rebound this year.

Standard Chartered's predicted price rise for Bitcoin is based on the rationale that miners, who are responsible for minting the 900 new bitcoins generated daily worldwide, would need to sell fewer coins to cover their expenses, primarily electricity costs for running their powerful computers.

Geoff Kendrick, the bank's analyst, estimated that miners have been selling 100% of their newly minted coins. However, if the price of Bitcoin reaches $50,000, it is likely that they would sell only 20-30% of their mined coins.

In Kendrick's words, this reduction in selling would be "the equivalent of miners reducing the amount of bitcoins they sell per day to just 180-270 from 900 currently." Over the course of a year, this change would decrease miner selling from 328,500 to a range of 65,700-98,550 bitcoins, resulting in a net supply reduction of approximately 250,000 bitcoins annually.

Additionally, in April or May, the total number of bitcoins that can be mined each day is set to halve due to the built-in supply and issuance mechanism of Bitcoin, which gradually limits the supply to maintain its appeal.

It's worth noting that predictions of high valuations during Bitcoin's previous rallies have been common. For instance, in November 2020, a Citi analyst forecasted that Bitcoin could climb as high as $318,000 by the end of 2022. However, Bitcoin closed the year with a 65% decline at around $16,500. $BTC $BNB

Remember that the cryptocurrency market is highly volatile and subject to rapid changes. It's important to conduct thorough research, stay updated with the latest news, and exercise caution when making investment decisions.

Over the last five days, Dogecoin (DOGE) miners have witnessed a significant surge in their reserves, according to data from crypto intelligence portal IntoTheBlock. The reserves of direct network participants have grown from 4.47 million to 4.52 million DOGE during this period, marking a notable increase.

In the crypto realm, such developments often serve as potential indicators of an imminent price surge for the token. Per traditional wisdom, an accumulation of reserves is viewed optimistically, implying bullish sentiment. Conversely, a sell-off by miners is typically perceived as a bearish sign. However, it is essential to consider the broader context surrounding these trends.

Taking a closer look at the larger picture, it becomes apparent that the spike in Dogecoin miners' reserves follows an outflow of 60 million DOGE earlier this month. This suggests that, in July alone, approximately 10 million more DOGE flowed out of these addresses than entered them. Related Here's How Much Dogecoin (DOGE), SOL, XRP Binance Holds While this may initially raise concerns, it is crucial to understand that Dogecoin miners' reserves merely account for 3.22% of the total tokens in circulation. Consequently, these fluctuations are less likely to exert a significant impact on the overall DOGE price. Instead, they may reflect current sentiment among network participants and provide insights into the DOGE market's dynamics. Is this ultimately a signal of an imminent Dogecoin rally? It is an open question, but the sentiment hints at such a possibility.

#dogecoin #miners

Understanding Bitcoin’s Halving Events

#Bitcoin goes through pre-programmed events called “halvings” approximately every 4 years that reduce the rate at which new bitcoins enter circulation. Here is an overview of how halvings work and their effects:

What is a Bitcoin Halving?

A halving is when the reward paid to Bitcoin #miners for processing transactions is cut in half. This happens after every 210,000 blocks are mined, or approximately every 4 years.

When Bitcoin first launched, the mining reward was 50 bitcoin per block. After the first halving in 2012, it dropped to 25 bitcoin. In 2016, it became 12.5, and the most recent halving in 2020 saw it fall to 6.25. $BTC

Impact on Bitcoin’s Supply

Halvings directly affect Bitcoin’s inflation rate and total supply. Bitcoins are issued at a fixed rate, but the amount created every 4 years keeps getting smaller due to the halvings. Over time this makes bitcoin scarcer.

There is a maximum supply cap of 21 million bitcoins. Without halvings, this would be reached faster. Halvings ensure it is a slow process that won’t be completed until around the year 2140.

Effects on Price and Mining Profitability

Historically, halvings lead to price appreciation as new supply slows down. Both previous halvings preceded major Bitcoin bull runs. However, the effects are not immediate.

For miners, profitability decreases after halvings since their revenue per block is cut in half. This forces less efficient miners to shut down operations. The remaining miners end up benefitting longer term with less competition.

Halvings are an integral event for Bitcoin’s economics. By decreasing the bitcoin creation rate over time, they help create digital scarcity and drive value. So far, halvings have positively influenced prices over the long term.

#Halving #Halving2024 #BTC

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On-chain analyst Ki Young Ju has highlighted that Bitcoin (BTC) miners sent 54,000 BTC in the past three weeks to #Binance . Should investors be concerned about a possible sell-off from Bitcoin miners?

As the price of Bitcoin started rallying in mid-June, the flow of Bitcoin from miners to exchanges has been rapidly increasing.

Bitcoin Flow: Miners Sent Over 65,000 BTC to Exchanges in The Past Month

Ki Young Ju highlighted on Twitter that miners had sent 54,000 BTC to Binance in the past three weeks. But there is no significant change in BTC-USD open interest. Hence, according to Ju’s opinion, there is a more likely chance of spot selling.

After BlackRock filed for the spot Bitcoin ETF, the flagship cryptocurrency’s price rallied over 20%. Eventually, Bitcoin miner-to-exchange flow also drastically increased. In the past 30 days, miners sent over 65,000 BTC to exchanges.

Bitcoin miner to exchange flow chart for the past 30 days. Source: CryptoQuant

But there are always two sides of the coin. Indeed there is an increase in the miner-to-exchange flow, but simultaneously, the exchange-to-miner flow is also increasing. The chart below shows Bitcoin’s exchange-to-miner flow.

What are the best #cryptocurrency mining hardwares? Read our complete guide here.

In the last 30 days, the total exchange-to-miner flow has been around 60,000 BTC. That makes up a netflow of around 5,000 BTC from #miners to exchanges.

Bitcoin exchange to miner flow chart for the past 30 days. Source: CryptoQuant

Are Bitcoin Whales Accumulating?

The Bitcoin netflow chart shows that the BTC outflow has dominated BTC inflows in the past 30 days.

Bitcoin exchange netflow chart. Source: CryptoQuant

Moreover, the market watcher “Maartunn” shared a chart that indicates Bitcoin mega whales are making purchases. The purple line on the chart below represents wallets with a balance of BTC worth $100,000 to $1 million.

Chart indicating #bitcoin wallets with a balance of $1 million to $10 million (brown line) is accumulating. Source: Twitter

While the brown line indicates wallets with a balance of #BTC in the range of $1 million to $10 million.

Maartun explained, “Purple is selling off while Brown is making purchases.”

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#BTC is limited to 21 million coins and around the year 2140, miners will get the last bitcoin.

Every 210,000 blocks (about once every four years) the reward to a #miners for mining a new block is halved. At first it was 50 coins, then it dropped to 25, in 2016 to 12.5, and in 2020 it will be 6.25. Thus, the rate of cryptocurrency issuance is constantly decreasing, but sooner or later the last bitcoin will be mined and their number will be unchanged.

This does not mean that miners will turn off their farms and go to spend their earned bitcoins. The network will continue to operate through transaction fees. Every time you send a #transfer , you pay a certain amount for processing it.

In theory, everything will happen as written above. But new developments such as quantum computers can change the course of mining. In addition, bitcoin's transition to PoS mining cannot be ruled out. For example, Ethereum has already started the process of switching to #PoS