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Bitcoin Halving 2024: The much-awaited Bitcoin halving event nears, and a dichotomy between the optimism of bullish investors and the caution of so-called ‘halving bears’ has taken the crypto world by storm. This primarily emerges as the BTC token braces for phenomenal price volatility ahead of the halving event, piquing significant investor attention.
With the total number of bitcoin tokens that miners can potentially harvest being halved (as the event name suggests), bullish sentiments in the market signal a potential price rally for BTC, aligning with the scarcity of new tokens harvested. Whereas skeptics fear a downturn as miners are rewarded less, in turn reducing the incentive to mine more Bitcoin. This sentiment clash in the market often manifests in heightened market volatility, as seen by the BTC token currently.
As of press time, the Bitcoin token traded at $63,270, with a 4.70% dip in its price over the past 24 hours. Notably, the token illustrates phases of a pre-halving correction, with the market witnessing panic selling and FOMO buying in hand. This phenomenon curated waves across the vast sea of crypto, with investors speculating over Bitcoin’s price action post-halving. Historical data portrays that the token witnesses a dip right before the halving, whereas following an extended consolidation post-halving, the BTC price trajectory embarks upon a parabolic uptrend. Here’s an overview of some of the live market updates amid the upcoming BTC halving saga:
BTC Miners To Sustain Staggering Losses
According to the insights revealed by Barchart, a platform streamlining real-time updates on all major commodities exchanges, BTC miners could sustain annual losses of up to $10 billion post-halving. This is primarily attributed to the nearly $2 billion short interest in 15 prominent BTC crypto-mining stocks, including Marathon Digital, CleanSpark, Riot Platforms, Bitfarms, and many others.
High short interest in BTC mining stocks flags skepticism surrounding the mining firms’ future prospects, in turn stirring a whirlpool of bearish sentiments on BTC post-halving. A sense of caution underlined by ‘halving bears,’ as mentioned above, further falls in line with this data.
Bitcoin Price Holds Support
As spotlighted by a renowned crypto analyst, Michael van de Poppe, the Bitcoin price’s current movement is holding above support despite selling pressure faced in a shorter time frame, underscoring the token’s resilience.
Should the BTC token slip below current support levels, the analyst anticipates Bitcoin to drop as low as $55K. However, the analyst stated that the token holds steady at current levels, with a gradual upward trajectory imminent, igniting a frenzy as the BTC halving nears.
Bitcoin Transaction Fees Hits $11 Mln Amid Looming Halving
Intriguingly, the BTC transaction fees, an amount users pay to process transactions on the Bitcoin network, reached the $11 million mark as the halving neared. This phenomenal increase in transaction fees comes riding the wave of higher demand and network congestion as miners rush to mine more BTC ahead of the halving.
As mining rewards taking a hit with every halving event, BTC miners continue to push for harvesting as many tokens as possible before the halving. This, in turn, also appears to have fueled a 4% surge in the network’s hash rate, compared to April, further underscoring the upsurge in BTC mining activity ahead of this year’s halving.
Bitcoin Halving Fuels Massive Exchange Outflows
According to Bitfinex data, as the BTC halving neared, the total number of coins that left CEXs totaled 6,767 BTC on April 12, marking the highest daily outflow since January 2023. Further, the one-year-plus inactive supply, i.e., the number of addresses that haven’t moved their BTC holdings in over a year, has plummeted, implying that the market is at a major inflection point. This signified that investors are accumulating BTC and moving their holdings to cold storage, anticipating potential price rises post-halving.