Bitcoin

Strike

Rare

<p>As we approach the imminent Bitcoin halving event, all eyes are on the miners and their financial stability post-halving. History shows us that immediately after the halving, miners experience a significant drop in revenue due to the <a href="https://www.cryptotimes.io/2024/04/15/bitcoin-halving-a-history-of-economics-shift-financial-independence/" target="_blank" rel="noreferrer noopener" data-wpel-link="internal">halving of block rewards</a>.&nbsp;</p> 
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  <img decoding="async" src="https://lh7-us.googleusercontent.com/OzCMaMwGOU75NpGC3HI8KdCRXtbbSOFDTk6JC0xoUSUhUY2_n8R_ztjWBGzYMA-WInFjuZf9pIXvlu7W0ORvhu_M_BskGVlbF-BDJT4nz4c77b2ex45oYseMJEuP3VxtmT7aAM6mfgfvn9x5XtexyaI" alt="OzCMaMwGOU75NpGC3HI8KdCRXtbbSOFDTk6JC0xoUSUhUY2 n8R ztjWBGzYMA WInFjuZf9pIXvlu7W0ORvhu M BskGVlbF">
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   Image Source: IntoTheBlock (History of Miners’ rewards post halving)
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<p>However, this downturn is typically short-lived. In fact, following previous halving events, Bitcoin’s value has consistently surged. For instance, after the halving in July 2016, Bitcoin’s value skyrocketed by threefold within the next 12 months.&nbsp;</p> 
<p>Similarly, following the last halving in May 2020, Bitcoin saw an astounding 500% increase in value over the subsequent year, according to CoinMarketCap data.</p> 
<p>Since miner revenue is correlated to the price of Bitcoin, it tends to reach new highs within a year of halving. This trend underscores the resilience and long-term profitability potential for miners in the Bitcoin ecosystem.</p> 
<p>In recent months, Bitcoin’s hash rate, indicating miners’ computational power, has steadily climbed, as the Santiment’s data analysis.</p> 
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   Image Source: <a href="https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3y" target="_blank" rel="noreferrer noopener" data-wpel-link="external">Bitinfocharts</a> (Bitcoin Hashrate Historical Chart)
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<p class="has-text-align-left">This surge could stem from miners upgrading to more efficient machines, boosting hash rates while optimizing electricity consumption.</p> 
<p>With the impending halving, and doubling of the miners’ breakeven costs, such enhancements are crucial for profitability.</p> 
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  <img decoding="async" src="https://lh7-us.googleusercontent.com/Ai4tZF-ltuOQk6x-6Ci3EPTuPQVw8VUb4gH-5z35XawFHV8q0dYEND9fo9jxN4foL94MBkhH8SIwfysXcY0-B67_O4TmFoojzFmdMgVzq9JyfTt02I7OxWs4dnmTBwiKUOX59SkipR4WzUBqsuxca10" alt="Ai4tZF ltuOQk6x 6Ci3EPTuPQVw8VUb4gH 5z35XawFHV8q0dYEND9fo9jxN4foL94MBkhH8SIwfysXcY0">
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   Image Source: Glassnode&nbsp;
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<p>Moreover, miners have been gradually selling off their Bitcoin reserves, possibly to fund investments in advanced hardware. The decreasing balance in the miner wallet hints at this strategic move.</p> 
<p>In summary, the upward trend in hash rates reflects miners’ proactive measures to adapt to the evolving landscape, balancing efficiency improvements with strategic asset management ahead of the halving event.</p> 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 <p>Also Read: <a href="https://www.cryptotimes.io/2024/04/17/bitcoin-halving-could-make-bitcoin-as-rare-as-gold-bybit/" target="_blank" rel="noreferrer noopener" data-wpel-link="internal">Bitcoin Halving Could Make Bitcoin ‘as Rare as Gold’: Bybit</a></p> 
</blockquote>

Will Miners Strike Gold? Countdown to Bitcoin Halving

The Crypto Times

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