The cryptocurrency community eagerly awaits Bitcoin’s fourth halving as the countdown to this significant event begins. Mining blocks fluctuate and are probabilistic; therefore, the halving date at block height 840,000 is unknown. However, the average block duration suggests half in 100 days according to Glassnode.
While the fourth halving is predetermined to occur at block 840,000, the exact date is unknown due to the natural variability and probabilistic nature of mining blocks.
Our best estimate, given the current average lockdown interval, is that the halving is now 100 days away. pic.twitter.com/amUFgglXcB
— glassnode (@glassnode) January 18, 2024
Bitcoin trades sideways below $43,000 as market awaits Bitcoin halving event
Bitcoin is trading horizontally below $43,000, indicating a lack of direction despite the anticipation of the halving event. Bitcoin price fell about 8% last week due to lack of support from the Bitcoin spot Exchange Traded Fund (ETF) following approval, causing “altcoin season.” The Bitcoin halving event could affect Bitcoin prices. Miners have already started selling their BTC in large quantities.
Market watchers say Bitcoin halving events drive price movements. Historical data links the halving of incidence to price increases. After the fourth halving in April, the next event will reduce incentives for BTC block mining to 3,125 BTC. Miners will receive half of the current reward for validating Bitcoin blockchain transactions.
Famous cryptocurrency miners are preparing for the 2024 Bitcoin halving event. Asset manager CoinShares found Riot, TeraWulf and CleanSpark ready for the crisis. Bitcoin miners will receive 50% less block rewards in April 2024 during the Bitcoin halving event. Miners face unique obstacles resulting from this deflationary policy’s regulation of network supply. CoinShares study sheds light on miners’ prospects after the halving.
Bitcoin price at $40,000 is critical for post-halving profitability
The third quarter of 2023 saw Bitcoin production costs of $16,800 and cash costs of $25,000. These figures are expected to rise to $27,900 and $37,800. Experts estimate that the average production cost of cryptocurrency miners after the halving will be $37,856. The loss of incentives and the need for miners to grow to remain profitable will increase expenses.
The CoinShares study assumes that Bitcoin will reach $40,000 after the halving. Mining companies could exhaust their financial and operational reserves at the reef. Riot’s cost structure and financial strength appear to make it well equipped to weather the halving. Riot could struggle if Bitcoin drops below $40,000.
The analysis predicts that only Bitfarms, Iris, CleanSpark, TeraWulf and Cormint will remain profitable if the value of Bitcoin falls below $40,000. Mining companies are optimizing energy use to improve fleet efficiency, but direct cost structure remains a concern.
As Bitcoin’s fourth halving approaches, the industry faces technological breakthroughs, market instability and the search for profitability. The halving event will undoubtedly impact cryptocurrencies.
