Connect with us
Active Currencies 13031
Market Cap $2,599,223,565,485.30
Bitcoin Share 50.65%
24h Market Cap Change $4.88

Bitcoin miners, BTC halving rates, and what HODLers can expect in 2024

2min Read

Share this article



  • A new report suggests that the next Bitcoin halving could trigger a rally
  • However, miners could face the pressure as revenues and fees dwindle

The next Bitcoin [BTC] halving, which is expected to occur in 2024, could impact Bitcoin holders positively. According to a new report by Messari, a new Bitcoin halving can induce a BTC rally.


     Read Bitcoin’s [BTC] Price Prediction 2023-2024


Glass ‘halve’ full

A Bitcoin halving is an event that occurs when the reward for mining Bitcoin transactions is cut in half. As can be seen from the image below, halving was always met with a spike in prices and a momentary rally.

Even though this halving could have a similar effect on BTC’s prices in the future, miners could be affected.

Source: Messari

Cutting Bitcoin’s rewards in half would negatively impact the already suffering mining industry. According to Glassnode, miner revenue had reached a one-month low at the time of writing.


 

The fees being paid to miners had also decreased and had reached a one-month low as well, according to Glassnode. This decline in revenue and fees before the halving could pose a serious threat to miners.

For mining to remain profitable, Bitcoin prices would have to soar to new heights.

Source: Messari

Weighing the pros and cons of Bitcoin

At press time, the outlook for Bitcoin was looking uncertain. The number of addresses holding over one coin had reached an all-time high of 192,000. This suggested that there was growing interest in Bitcoin from large investors.

Although large addresses had shown their interest in Bitcoin, the number of traders going long on BTC had decreased. As can be seen from the image below, the number of traders who held a long position on Bitcoin decreased over the last month.

On 12 November, 70% of the top traders had gone long on Bitcoin. Since then, that value reduced and at press time, the percentage of traders going long on Bitcoin was 53/19%, according to data provided by Coinglass.

Source: Coinglass

Another factor that could affect BTC’s prices could be the incentive of short-term holders to sell their positions. In the image below, it can be seen that the Market Value to Realized Value (MVRV) ratio increased. This implied that selling BTC at press time would generate a profit.

Even though long-term holders and maximalists weren’t inclined to sell, a declining long/short difference showed that short-term holders would profit from this trade. If short-term sellers succumb to the selling pressure, it could lead to a slight depreciation of Bitcoin’s prices in the near future.

Source: Santiment


Share

Saman is a News Editor at AMBCrypto. Her background in History and English expanded on her knack for editing and presenting all sides of a story without bias. With a strong will to learn, Saman is always up for exploring unknown territory, and crypto, with its ever-changing landscape, offers just that.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.