Galaxy

Bitcoin

ORDI

<html>
 <head></head>
 <body>
 As per JP Morgan analysts, the upcoming Bitcoin <a href="https://ultramining.com/news/en/upcoming-bitcoin-halving-threatens-mining-profitability-analysts-warn/" rel="noopener noreferrer nofollow">halving</a> event in 2024 could increase the production cost of Bitcoin, putting miners to the test. The reward for Bitcoin mining will drop from 6.25 to 3.125 BTC. This drop will raise Bitcoin’s production cost while simultaneously reducing miners' revenue, according to <a href="https://decrypt.co/148736/bitcoin-miners-face-stress-test-in-next-halving-jp-morgan" rel="noopener noreferrer nofollow">decrypt</a>.&nbsp; 
 Bitcoin’s current market price is around $30,000, while the cost to mine it, based on an average global electricity cost of $0.05/kWh, is roughly $20,000. However, fluctuations in the hash rate indicate that miners utilize diverse energy sources. Miners with access to cheaper power sources have an edge. If electricity cost rises by a cent per kilowatt hour, Bitcoin's production cost will increase by $4,300. This sensitivity is expected to double post-halving. 
 Despite these challenges, institutional interest from firms like Galaxy Digital and Grayscale Investments has given a boost to struggling miners. Moreover, Tether, the largest stablecoin issuer, plans to invest in a Bitcoin mining site in El Salvador. 
 Nevertheless, for the lower block reward to be offset, Bitcoin's price and transaction fees must surge significantly. Besides, declining hype around cryptocurrencies and Bitcoin not keeping up with record-high daily Ordinals inscriptions pose added challenges. 
 JP Morgan suggests that without a significant increase in Bitcoin's price above production cost or transaction fees, the Bitcoin hash rate may not maintain its pace post the 2024 halving event. 
 Subscribe to our Telegram <a href="https://t.me/ultraminingcom" rel="noopener noreferrer nofollow">channel</a>! Only the most interesting stuff there
 </body>
</html>

Bitcoin Miners Set for a Tough Ride as 2024 Halving Nears: JP Morgan

Ultramining_Eng

Other articles published on Jul 17, 2023

Celsius Sells Altcoins After Court Approval

Bitcoin News: Decoding Bitcoin’s Weekly Price Trends, What to Expect for BTC

Three Coins To Surge 50x in 2023 Pepe (PEPE), Tradecurve (TCRV) and Floki (FLOKI)

BlackRock CEO Larry Fink: Bitcoin and Crypto Set to Overtake USD, EUR, GBP, JPY, RUB, and CNY in ...

Binance Completes Integration of Bitcoin Lightning Network

FTX Sues Founder and Former Leaders, Seeking $323M Refund

Join our free newsletter for daily crypto updates!