Halving $BTC , with less than 1000 blocks left, could cause a loss of $10 billion for mining companies. Analysts note this, writes Incrypted with a link to Bloomberg.
One of the key events of 2024, which is likely to take place on April 20, according to the BitcoinBlockHalf portal. After the halving, the reward for a mined Bitcoin block will be reduced from 6.25 BTC to 3.125 BTC.
Considering the current price of the first cryptocurrency, the industry will lose approximately $10 billion in one year, experts noted.
To reduce losses from the Bitcoin halving, Marathon Digital, CleanSpark, Phoenix Group and other miners invested in new equipment and focused on expanding capacity by acquiring smaller competitors.
“This is the last chance for miners to make as much profit as possible before their operations suffer. As revenues decline across the board, each miner's strategic response and how they adapt may well determine who comes out ahead and who gets left behind, said CoinShares analyst Matthew Kimmell.
According to statistics, on average miners mine 144 blocks per day. This means that approximately every 10 minutes someone processes one block of the first cryptocurrency.
According to The MinerMag, mining companies account for approximately 20% of the capacity, while private miners occupy the majority of the market. The latter could suffer serious damage after the halving, analysts say.
They explain this by saying that private miners have to raise debt financing or venture capital to fund their needs, while public companies can do this through the sale of shares.
It is noteworthy that against the backdrop of this event, the volume of short positions in the shares of the 15 largest mining companies amounted to about $2 billion. Thus, many traders expect a decrease in the value of securities of Bitcoin miners.
According to JPMorgan analysts, halving could lead to a drop in the rate of the first cryptocurrency to $42,000. Representatives of the Coinbase exchange also expressed doubts about the expected Bitcoin rally after its production was halved.
As you can see, there is an alternative opinion regarding the influence of #HalvingBTC
Think, analyze and make decisions within the limits of the risks you can afford
