2024-03-09 06:00:00
7h00 ▪
3
min de lecture ▪ par
Eddy S.
Crypto investors have good reason to be optimistic as the next bitcoin halving approaches in April. However, a well-respected analyst urges caution. The road could be bumpy despite the favorable outlook, especially for the BTC mining industry.
A confirmed Bitcoin rally but risks to be expected
According to Rekt Capital, bitcoin has indeed entered its typical rally phase preceding a halving. These periods are historically buoyant for the value of the main crypto. However, Rekt specifies that even in this bullish context, investors should expect occasional drops, such as that of 14% observed a few days ago. “The best we can hope for are these dips, but be careful what you wish for – the dips are coming,” the strategist warns on his widely followed X account.
A major challenge for a fragile mining industry
This is an all the more pressing call for the mining sector, which could pay a heavy price in the event of high volatility. From April, the rewards for bitcoin mining will in fact be halved, from 6.25 BTC to 3.125 BTC per mined block. Considerable financial pressure which, combined with possible price fluctuations, threatens the profitability of many mining players.
The specter of the previous 2020 cycle looms large. As indicated Rekt Capital, bitcoin then suffered a violent correction after the halving, before experiencing a parabolic surge thereafter. A scenario that the analyst does not exclude seeing happen again, with the damage that this would imply for the most vulnerable minors.
If the rally before the halving seems well underway for bitcoin, Rekt Capital’s warnings remind us that we will have to navigate with caution. Downward fluctuations remain possible and could even prove violent, as the example of the previous cycle suggests. For investors and the mining industry alike, this period could well hold some shocks despite the encouraging long-term prospects. Wise risk management will be key to taking full advantage of the underlying upside potential.
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Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
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