The Bitcoin halving, an important event written into
the cryptocurrency’s code, is two days away. This event, which occurs roughly
every four years, reduces the rewards for Bitcoin miners by half. The cryptocurrency
community is abuzz with anticipation ahead of the halving, especially given recent developments such
as the approval of spot Bitcoin ETFs and improved crypto regulations.
The Helmingun 2024 is expected to have an impact throughout the entire financial system as retail investors gain exposure to
Bitcoin through ETFs. This could result in increased crypto transactions,
trading volume, investment, and speculation in the sector, Finance Magnates reported. According to the countdown by Binance, the Bitcoin halving event will occur in the next two days.
Heimild: Binance
Following the halving, miners often experience a
significant reduction in revenue. Additionally, the reduction in selling
pressure can contribute to increased trading volume and price
flökt in the market. Goldman Sachs recently cautioned investors against associating Bitcoin halving with price surges, Coindesk reported. This is because continued price gains rely on strong inflows into
spot ETFs and not just the halving.
While previous halvings have been followed by
price appreciations, Goldman has pointed out that various macroeconomic factors play a significant role. The firm highlighted that the time taken to reach peak values in the past significantly varied. Additionally, the macroeconomic environment during
past halvings differed from the current landscape, marked by high inflation and
vextir.
Bitcoin ETFs og Market Dynamics
Similarly, Goldman emphasized in a report by Bloomberg
the importance of considering other factors, such as the adoption of spot ETFs,
in driving Bitcoin’s price. The recent rally in BTC prices, fueled by inflows into
U.S.-based spot ETFs, suggests that a significant portion of post-halving
expectations may have already been priced in.
Fred Thiel, the CEO of Marathon Digital Holdings Inc.,
echoed Goldman’s sentiment, suggesting that the success of ETF approvals has
accelerated price appreciation typically observed after halvings. However, Thiel acknowledged the potential impact of
á halving on Bitcoin’s supply dynamics and emphasized miners’ optimism
towards the event.
með #BitcoinHalving just a few hours away, we can expect a volatile market. Best strategy is to either DCA into your favourite coins or just don’t touch your bags at all. Things will settle in a couple of days & after some side way action, we will start moving up, especially the… pic.twitter.com/46YEXP57N8
— Cryptonic Bull (@Cryptonic_Bull) Apríl 17, 2024
Recently, Bitcoin Cash (BCH) experienced its own halving.
After the event, the cryptocurrency forked from Bitcoin, dropped 15%. According to Coindesk, this has prompted crypto
traders to reassess their expectations of an immediate price surge in Bitcoin post-halving.
Bitcoin Cash, created in 2017, has historically been
viewed as a measure of Bitcoin’s market sentiment. Its recent rally, followed
by a sharp decline eftir helmingun, suggests caution regarding Bitcoin’s upcoming
helmingun.
The decline in the price of Bitcoin Cash was
accompanied by the collapse in open interest for BCH futures. This trend indicates a
shift in market dynamics. Additionally, negative funding rates across major
exchanges reportedly underscore a potential unwinding of bullish sentiment.
Insights from Analysts and Experts
Investment banking giant JPMorgan anticipates a
sell-off to $42,000 once the halving hype subsides. The impending reduction in
miners’ rewards by 50% could lead to increased selling pressure, potentially
impacting Bitcoin’s price trajectory in the coming months.
Meanwhile, the Grayscale koma auga á Bitcoin ETF (GBTC) recently experienced a significant decline in holdings. According to a report by Cointelegraph, the fund dropped by half from its trading debut in January to 309,871 BTC as of April 16, 2024.
Since its inception, GBTC has faced a massive sell-off,
significantly impacting Bitcoin prices. The reason attributed to this outflow
is the high trading fees, with GBTC initially having the highest fees among US
spot Bitcoin ETFs, set at 1.5%. This discrepancy in fees has prompted other ETFs to
lower their fees, ranging between 0.2% and 0.4%.
In contrast, BlackRock’s IBIT
offered a competitive fee of 0.25% at launch. Thus, IBIT
has experienced an extraordinary surge, increasing holdings by over 10,000%
since its debut. Despite the lack of direct correlation, the surge adds to the
significant Bitcoin-related events.
Bitcoin ETF Landscape
Overall, the collective holdings of the ten spot
Bitcoin ETFs approved in the US reached approximately 862,162 BTC, valued at $54.7 billion as of
April 16, 2024. While the decline of GBTC and the surge of IBIT dominate headlines, other
ETF providers have accumulated significant holdings, contributing to the
dynamic landscape of Bitcoin investments.
Meanwhile, Bitcoin mining profitability has experienced a significant downturn of 75% over the past three years. According to Stocklytics.com, profitability dropped from March 2021 to March 2024.
Heimild: Statista
This trend is attributed to various factors, including
the rising costs associated with mining operations and the impact of helmingaskiptaviðburði on miners’ rewards. The metric used to measure Bitcoin mining
profitability is the hash price, denoted in dollars per terrahash (USD/TH).
This metric is influenced by several factors, including the price of Bitcoin,
transaction fees, network complexity, and block subsidies.
Despite Bitcoin’s price surges in the past, mining
profitability has been on a steady decline, with diminishing returns becoming
increasingly evident. Bitcoin mining operations face numerous challenges that
impact profitability. Energy consumption is a significant concern, with the
process consuming vast amounts of electricity annually.
The Bitcoin halving, an important event written into
the cryptocurrency’s code, is two days away. This event, which occurs roughly
every four years, reduces the rewards for Bitcoin miners by half. The cryptocurrency
community is abuzz with anticipation ahead of the halving, especially given recent developments such
as the approval of spot Bitcoin ETFs and improved crypto regulations.
The Helmingun 2024 is expected to have an impact throughout the entire financial system as retail investors gain exposure to
Bitcoin through ETFs. This could result in increased crypto transactions,
trading volume, investment, and speculation in the sector, Finance Magnates reported. According to the countdown by Binance, the Bitcoin halving event will occur in the next two days.
Heimild: Binance
Following the halving, miners often experience a
significant reduction in revenue. Additionally, the reduction in selling
pressure can contribute to increased trading volume and price
flökt in the market. Goldman Sachs recently cautioned investors against associating Bitcoin halving with price surges, Coindesk reported. This is because continued price gains rely on strong inflows into
spot ETFs and not just the halving.
While previous halvings have been followed by
price appreciations, Goldman has pointed out that various macroeconomic factors play a significant role. The firm highlighted that the time taken to reach peak values in the past significantly varied. Additionally, the macroeconomic environment during
past halvings differed from the current landscape, marked by high inflation and
vextir.
Bitcoin ETFs og Market Dynamics
Similarly, Goldman emphasized in a report by Bloomberg
the importance of considering other factors, such as the adoption of spot ETFs,
in driving Bitcoin’s price. The recent rally in BTC prices, fueled by inflows into
U.S.-based spot ETFs, suggests that a significant portion of post-halving
expectations may have already been priced in.
Fred Thiel, the CEO of Marathon Digital Holdings Inc.,
echoed Goldman’s sentiment, suggesting that the success of ETF approvals has
accelerated price appreciation typically observed after halvings. However, Thiel acknowledged the potential impact of
á halving on Bitcoin’s supply dynamics and emphasized miners’ optimism
towards the event.
með #BitcoinHalving just a few hours away, we can expect a volatile market. Best strategy is to either DCA into your favourite coins or just don’t touch your bags at all. Things will settle in a couple of days & after some side way action, we will start moving up, especially the… pic.twitter.com/46YEXP57N8
— Cryptonic Bull (@Cryptonic_Bull) Apríl 17, 2024
Recently, Bitcoin Cash (BCH) experienced its own halving.
After the event, the cryptocurrency forked from Bitcoin, dropped 15%. According to Coindesk, this has prompted crypto
traders to reassess their expectations of an immediate price surge in Bitcoin post-halving.
Bitcoin Cash, created in 2017, has historically been
viewed as a measure of Bitcoin’s market sentiment. Its recent rally, followed
by a sharp decline eftir helmingun, suggests caution regarding Bitcoin’s upcoming
helmingun.
The decline in the price of Bitcoin Cash was
accompanied by the collapse in open interest for BCH futures. This trend indicates a
shift in market dynamics. Additionally, negative funding rates across major
exchanges reportedly underscore a potential unwinding of bullish sentiment.
Insights from Analysts and Experts
Investment banking giant JPMorgan anticipates a
sell-off to $42,000 once the halving hype subsides. The impending reduction in
miners’ rewards by 50% could lead to increased selling pressure, potentially
impacting Bitcoin’s price trajectory in the coming months.
Meanwhile, the Grayscale koma auga á Bitcoin ETF (GBTC) recently experienced a significant decline in holdings. According to a report by Cointelegraph, the fund dropped by half from its trading debut in January to 309,871 BTC as of April 16, 2024.
Since its inception, GBTC has faced a massive sell-off,
significantly impacting Bitcoin prices. The reason attributed to this outflow
is the high trading fees, with GBTC initially having the highest fees among US
spot Bitcoin ETFs, set at 1.5%. This discrepancy in fees has prompted other ETFs to
lower their fees, ranging between 0.2% and 0.4%.
In contrast, BlackRock’s IBIT
offered a competitive fee of 0.25% at launch. Thus, IBIT
has experienced an extraordinary surge, increasing holdings by over 10,000%
since its debut. Despite the lack of direct correlation, the surge adds to the
significant Bitcoin-related events.
Bitcoin ETF Landscape
Overall, the collective holdings of the ten spot
Bitcoin ETFs approved in the US reached approximately 862,162 BTC, valued at $54.7 billion as of
April 16, 2024. While the decline of GBTC and the surge of IBIT dominate headlines, other
ETF providers have accumulated significant holdings, contributing to the
dynamic landscape of Bitcoin investments.
Meanwhile, Bitcoin mining profitability has experienced a significant downturn of 75% over the past three years. According to Stocklytics.com, profitability dropped from March 2021 to March 2024.
Heimild: Statista
This trend is attributed to various factors, including
the rising costs associated with mining operations and the impact of helmingaskiptaviðburði on miners’ rewards. The metric used to measure Bitcoin mining
profitability is the hash price, denoted in dollars per terrahash (USD/TH).
This metric is influenced by several factors, including the price of Bitcoin,
transaction fees, network complexity, and block subsidies.
Despite Bitcoin’s price surges in the past, mining
profitability has been on a steady decline, with diminishing returns becoming
increasingly evident. Bitcoin mining operations face numerous challenges that
impact profitability. Energy consumption is a significant concern, with the
process consuming vast amounts of electricity annually.
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- Heimild: https://www.financemagnates.com//cryptocurrency/bitcoin-halving-countdown-why-it-may-not-guarantee-price-surge/
