Miner revenue drops after halving but typically recovers as Bitcoin’s price rises.
Price increases and transaction fees now significantly affect miners’ profitability.
Mining efficiency is key as rewards shrink, making price stagnation a risk.
Bitcoin’s stock-to-flow (S2F) model creator, PlanB, is highlighting the challenges miners face after the most recent halving. He suggests a significant price increase, possibly doubling Bitcoin’s current value, may be needed to ignite the next bull market.
Miners are still struggling with the aftermath of the halving. We need 2x current BTC price to kick-start the bull pump. pic.twitter.com/TmJEyI8L2d
— PlanB (@100trillionUSD) September 15, 2024
Bitcoin’s halving events occurring roughly every four years, reduce block rewards for miners. The impact on revenue isn’t immediate but unfolds over time as Bitcoin’s price and transaction fees adjust to compensate for the reduced rewards.
Read also: Bitcoin Halving’s Delayed Impact: Bull Run in Q4?
PlanB posted a monthly miner revenue chart illustrating how revenue fluctuates in the months leading up to and following halvings. Red indicates periods closer to the…
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