Bitcoin Halving: Miner Sell-Off Fears, PoW Revival

As the Bitcoin Halving nears, there’s anticipation for a potential bull run, but miners are showing hesitation, setting this halving apart from previous ones. This dynamic could impact the Proof-of-Work (PoW) consensus mechanism.

Historically, halvings push miners to sell BTC and upgrade equipment. Bloomberg suggests miners could face up to $10 billion in revenue loss with the daily BTC reward halving from 900 to 450, based on current prices. However, a recent rally, driven by ETF demand, has led US miners to hold onto BTC, while smaller miners might be leaving the market.

This hesitancy, along with significant hash rate drops, could see smaller miners exiting entirely. Analysts predict miners might sell around $5 billion worth of BTC post-halving, potentially leading to price stagnation.

Unlike past cycles, this halving follows an earlier rally due to ETF demand outpacing mining production. Despite the looming supply shock, it might attract more investors. BTC’s price may stabilize around $60,000-$70,000, with predictions from experts like CoinCodex and Gemini suggesting prices could reach $100,000 to $170,000 by August 2025.

The PoW mechanism, known for its energy consumption, has seen improvements with newer mining technologies. While halvings phase out less efficient rigs, PoW still requires significant energy. As BTC supply diminishes, miners may seek greener energy sources for efficient mining.

Image Credit: Shutterstock

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Bitcoin Halving: Miner Sell-Off Fears, PoW Revival

was first posted on April 17, 2024 at 1:11 pm.
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