Bitcoin miners are gearing up for the upcoming halving scheduled for April, with BTC posting mixed signals.
With the mining reward set to be slashed by half, it’s been speculated that miners have recently sold off their holdings after the digital asset retested its all-time high of $69,000.

The fourth Bitcoin halving in its history is fast approaching, with Bitcoin miners expected to feel the heaviest impact. This historically bullish event will see the number of tokens rewarded to miners slashed in half. Miners have in the last four years been receiving 6.25 BTC, this will be cut by half to 3.125.

History shows that, pre-halving, Bitcoin goes on a parabolic bull run. This is already evident with BTC retesting its all-time high of $69,000 reached a few days ago. While things are looking bullish, it bears to mention that the most challenging time for miners comes post-halving. To remain profitable, BTC’s price performance has to compensate for the reduced quantity.

The first couple of months after the halving could prove challenging, as miners try to maintain existing hashrate, energy, and real estate. During this time, miners play catchup after an abrupt pay cut. In the past, this has led to the exit of weak miners.

However, Bitcoin has in the past shown resilience, with prices continuing its exemplary price performance post-halving, so far, leading to an all-time high.

At the time of writing, BTC is trading at $67,800 after rebounding with a 3% surge in the last 24 hours. This however is still below its recent high of $69,000, which saw the digital asset retest its all-time high.

Once the reward is slashed, the market could see the number of coins entering the market decrease as miners hold out to sell at higher prices. This could help drive prices higher.

The rebound from the $61,000 support is proof of a healthy market. Demand for BTC is high, leading to a quick and strong rebound in local support. Market experts reveal that the ongoing breakout could lead to an all-time high, with bulls eyeing $70,000. Further down the road, experts foresee the asset reaching over $100,000 before the end of the year.

The recent correction was partially blamed on miners selling their holdings after BTC reached $69,000 for the first time since 2021. But fueling the long-running bull pattern is the huge demand from institutional investors. As CNF has highlighted, Bitcoin spot ETFs have in recent weeks experienced record volumes, proof of institutional appetite for BTC. In fact, BlackRock’s IBIT has surpassed traditional silver trusts in total AUM. Bulls are now getting ready to reach and possibly overtake gold in the months or years to come.

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Filed under: Bitcoin - @ March 6, 2024 7:01 pm