2024-03-14 12:07:59
Bitcoin .coin_price { border-radius: 3px; background-color: #fff; box-shadow: 0 1px 4px -1px rgba(0,0,0,.2),0 1px 5px 0 rgba(0,0,0,.1),0 1px 1px 0 rgba(0,0,0,. 1); color: #232323; padding: 3px by 6px; pound-weight: 500; display: inline-flex; align-items: center; margin: 0 5px; } .coin_price img { width: 16px !important; height: 16px !important; margin: 0 6px 0 0 !important; right: initial !important; left: initial !important; margin-left: auto; margin-right: 6px; } .coin_red { color: red; } .coin_green { color: green; } Due to the continuous increase in the price of BTC Price, the income of cryptocurrency miners has reached an unprecedented level. Due to the lucky combination of factors and the breaking of Bitcoin’s all-time high, miners can look forward to the April event with peace of mind. That’s according to a Deutsche Bank research note.
Everything seems to be coming together
In November 2021, the cryptocurrency market began a drastic decline and suffered for almost 2 years. During this time, companies such as Celsius, BlockFi or FTX went bankrupt, and projects such as Terra Luna, which was previously considered one of the most promising algorithmic cryptocurrencies, collapsed causing millions of losses.
It’s the spring of 2024, and it looks like everything is starting to come together. According to Deutsche Bank’s report on March 11, 2024, miners’ earnings a new peak achieved with his $78 million. This record income coincides with another rise in Bitcoin, which has now successfully reached the $72,000 level. Business Insider reports that we will be witnessing even more drastic price increases in the coming months, but let’s take a look at what got us here.
Literally all of the factors causing the boom have synergized with each other: the change in the regulatory environment, the loosening of monetary policy and the increased interest of Wall Street have also had a significant impact on the crypto market in recent months. In January, 11 Bitcoin spot ETFs were approved, which are hugely popular, but according to the latest information, BitWise predicts even more interest in the first cryptocurrency ETF in the second quarter. If the news is true, in addition to Wells Fargo and Merrill Lynch, Morgan Stanley also wants its own Bitcoin spot ETF, which will create an even more bullish mood in the already bullish market as a result of the upcoming halving event.
Effect of the halving event
Anyone who has even a minimal understanding of the world of crypto-currencies knows that the market always starts following the Bitcoin halving. However, many people do not know the economic explanation for this. At the Bitcoin halving, the miner’s reward will be halved, thus maintaining that the last Bitcoin will not be mined until around 2140. In April 2024, the block reward will decrease from 6.25 BTC to 3.125 BTC, which will concretely halve the miners’ “salary”.
By halving the profits of the miners from one moment to the next, it puts them in a difficult position, because who wants to get paid half for the same work. Miners are forced to stop due to the decrease in profits, which may lead to miner capitulation. At the same time, this cycle is different than before: due to the fact that Bitcoin reached a price peak before the halving, miners can still count on a significant profit following the halving – this has never happened before. Due to higher prices, miners sell fewer Bitcoins, thereby decreasing the amount of available, tradable Bitcoins – in other words, the supply decreases. And the decrease in supply leads to a further increase in the exchange rate – this is called a supply shock in economics.
Geoff Kendrick, an analyst at Standard Chartered, said that this special, unprecedented situation might send the world’s leading cryptocurrency to new heights and thus to a new shelf, and its price, depending on the inflows into ETFs, might reach up to $100,000 level as well.
According to the latest report by Kaiko Research, such a surge in the value of Bitcoin generates approximately 1,500 new “millionaire wallets” per day, indicating an increase in interest in investing in cryptocurrencies. Most people agree that the last cycle was not the real one thanks to COVID-19, the Chinese miner or the interest rate hike that was already announced. This is compounded by a series of unfortunate coincidences suffered during the bear market. Because of this, plus the incredible popularity of ETFs and the upcoming election, the industry believes that this cycle will be stronger than ever and is expected to be the last “real” cycle.
Published on the BitcoinBázis page.
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