Last Saturday, the market's long-awaited “halving” of Bitcoin was finally completed!
Since the “halving” was completed, Bitcoin has risen slightly and is currently stable above $66,000.
Bitcoin supporters previously predicted that “halving” would be a positive catalyst for the latest bull market, because while demand rose (from Bitcoin spot ETFs), “halving” further reduced the supply of Bitcoin.
As a result of this halving, the number of bitcoins produced by miners through verified transactions each day was reduced from 900 to 450, and the rewards miners received were reduced from 6.25 bitcoins to 3.125 bitcoins.
Historically, the Bitcoin “halving” event has often been seen as a catalyst for Bitcoin's price increase, as a decrease in the supply of new bitcoins may increase their value.
Regarding the subsequent trend of Bitcoin, Standard Chartered Bank's price target for Bitcoin at the end of this year is 150,000 US dollars, which means that by the end of this year, Bitcoin will more than double from the record high in March this year. He believes that as large-scale Bitcoin ETF funds continue to flow in, the cryptocurrency market may reverse its recent decline later this year and continue to rise.
However, Xiaoma does not expect the price of Bitcoin to rise after being halved, because this benefit has already been digested.
However, judging from the trend, compared to Bitcoin itself, this “halving” has a greater impact on miners. On the eve of the halving, the trend of Bitcoin miners plummeted, but recently, Bitcoin concept stocks seem to have begun to usher in a new round of counterattacks.
Judging from the increase in the past 5 trading days, Bitcoin mining giants$Riot Platforms (RIOT.US)$The cumulative rebound has exceeded 47%.$TeraWulf (WULF.US)$,$CleanSpark (CLSK.US)$,$Cipher Mining (CIFR.US)$With an average increase of more than 40%,$Marathon Digital (MARA.US)$,$Hut 8 (HUT.US)$Up more than 30%,$Iris Energy (IREN.US)$,$Bitdeer Technologies (BTDR.US)$,$Bitfarms (BITF.US)$Up more than 20%,$Coinbase (COIN.US)$,$MicroStrategy (MSTR.US)$The performance was slightly poor, with only 8% and 6% recorded.
J.P. Morgan Chase analyst Reginald Smith recently stated in an investor report:
Without changing other conditions, the “halving” will cut the revenue of the mining industry, triggering a new wave of industry consolidation and the collapse of mining companies. But at the same time, “halving” is expected to rationalize network computing power and industry capital expenditure, which will ultimately benefit remaining mining companies.
There are two main sources of income from Bitcoin absenteeism: mining rewards and transaction fees. The “halving” directly affects miners' mining rewards. However, miners' operating costs, such as electricity and equipment costs, will not be reduced by halving.
This means that if Bitcoin prices and transaction fees do not rise significantly to offset the “halving” effect of rewards, many miners may face difficulties in making a profit.
Bernstein analyst Gautam Chhugani said:
In the absence of a Bitcoin ETF, the market has so far viewed mining stocks as agents of Bitcoin. The halving will further differentiate mining companies: Low-cost, large-scale, and integrated winners will stand out from many small and medium-sized mining companies, which may fall into an unfavorable situation after the halving.
Editor/Somer