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- Bitcoin miners are gearing up for the halving scheduled for next April, with BTC giving mixed signals.
- With mining rewards set to be cut in half, there is speculation that miners recently sold their holdings after the digital asset retested its all-time high of $69,000.
Bitcoin’s fourth halving in its history is fast approaching, with Bitcoin miners expected to feel the brunt of the impact. This historically bullish event will see the number of tokens given to miners cut in half. Miners in the past four years have received 6.25 BTC, this amount will be cut in half to 3.125.
History shows that, before the halving, Bitcoin experienced a parabolic rise. This is already evident with BTC retesting its all-time high of $69,000 reached a few days ago. While everything looks bullish, keep in mind that the most challenging time for miners is post-halving. To remain profitable, BTC’s price performance must compensate for the reduced quantity.
The first few months after the halving can be challenging, as miners try to maintain their existing hashrate, energy, and real estate. During this time, miners are trying to catch up after sudden pay cuts. In the past, this has led to the exit of weak miners.
However, Bitcoin has shown its resilience in the past, with the price continuing its exemplary price performance after halving, so far, leading to all-time highs.
At the time of writing, BTC is trading at $67,800 after rebounding with a 3% surge in thelast 24hours. However, this price is still below its recent high of $69,000, which has the digital asset retesting its all-time high.
Once the bounties are cut, the market could see the number of coins coming into the market decrease as miners hold out to sell at higher prices. This could help push prices higher.
The rebound from the $61,000 support is evidence of a healthy market. Demand for BTC is high, leading to a quick and strong rebound on local support. Market experts reveal that the ongoing breakout could lead to all-time highs, with bulls eyeing $70,000. Further ahead, experts expect the asset to reach over $100,000 before the end of the year.
The recent correction is partly blamed on miners selling their holdings after BTC hit $69,000 for the first time since 2021. But what is driving the long-term upward pattern is the enormous demand from institutional investors. As CNF has highlighted, spot Bitcoin ETFs in recent weeks have seen record volumes, evidence of institutional interest in 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 coming months or years.
