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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Apr 12, 2024 11:24 UTC
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Bitcoin Halving Countdown: Will Miners Survive the Profit Squeeze? Here’s the Truth
Bitcoin under $80K could bankrupt miners; Kenn Bosak warns of financial risk post-halving.
Bitcoin's price stability vital for mining profitability; historical data points to potential surge.
Rekt Capital predicts potential surge to $130K, drawing parallels with historical halving cycles.
With only a week remaining until the Bitcoin halving, the cryptocurrency market is on edge as Bitcoin sits around $70,000, showing an unusual calmness before the storm. However, underneath this surface tranquility, miners are grappling with a daunting challenge: the soaring mining difficulty that threatens their profits post-halving.
Here’s everything you need to know about this.
Miners’ Dilemma: The $80,000 Threshold
Kenn Bosak, a prominent figure in the crypto world, issues a warning that Bitcoin must maintain a price above $80,000 after the halving to keep mining profitable. Falling short of this mark, he cautions, could spell financial disaster for miners, pushing them toward bankruptcy.
The Three Possible Scenarios
Bosak outlines three scenarios based on Bitcoin’s current price trend:
- Staying Strong: If Bitcoin manages to stay above $80,000, miners can remain profitable and keep the mining ecosystem healthy.
- Facing Financial Strain: If Bitcoin’s price sharply drops below $80,000, miners may struggle financially, risking bankruptcy. The recent surge in mining difficulty, reaching 86.39 trillion hash marks, adds to the challenge.
- Hope from Institutions: Despite the risks, Bosak suggests that institutional investors might step in to rescue struggling miners, leading to industry consolidation.
Read More: Bitcoin Halving will fuel These Major Altcoins – 2x-5x Profits Expected!
Bitcoin’s Re-Accumulation Phase
Renowned crypto analyst Rekt Capital notes that Bitcoin is entering a re-accumulation phase as the halving nears.
Looking back at historical data, Rekt Capital sees similarities with the 2020 halving cycles, where Bitcoin’s price stabilized around $14,000 before surging to $69,000 in 2021.
Predicting the Future
As of now, Bitcoin is priced at $70,838, showing a slight decrease over the past 24 hours, while its market cap remains at $1.39 trillion.
As the Bitcoin halving draws nearer, the fate of miners hangs in the balance. With stakeholders preparing for the impending shift, all eyes are on the charts, anticipating the event that could reshape the crypto market landscape.
Also Read: Will BTC Price Hit $100,000 This Month? Experts Bullish on Upcoming Bitcoin Halving
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