- New Report Suggests Next Bitcoin Halving Could Cause Rally
- However, miners may face pressure as revenue and fees decline
next Bitcoin [BTC] The expected halving in 2024 could have a positive impact on Bitcoin holders. According to a new report by Messari, The new Bitcoin halving is BTC rally.
#bitcoinhalving reduces Bitcoin security costs $BTC Clause.
It seems natural that dollar demand for security would not be affected by the halving, as security demand remains regardless of block rewards through the expected demand lens of the security model. pic.twitter.com/K2tHbLWz30
— Messari (@MessariCrypto) December 11, 2022
read bitcoin [BTC] price prediction 2023-2024
Full “half” of the glass
Bitcoin Halving is an event that occurs when the reward for mining Bitcoin transactions is halved. As you can see from the image below, halvings always have price spikes and temporary increases.
This halving could have a similar effect on the price of BTC in the future, although miners may be affected.
Source: Messari
Cutting Bitcoin rewards in half would have a negative impact on an already struggling mining industry. According to Glassnode, miner earnings have hit their lowest in a month. writing time.
📉 #bitcoin $BTC Minor return from fees (7d MA) hits 1-month low of 1.981%
A one-month low of 1.998% was observed on December 10, 2022
Show metrics:https://t.co/NphJIZNcsL pic.twitter.com/haLVdFDR6C
— Glassnode Alerts (@glassnodealerts) December 11, 2022
Fees paid to miners have also fallen, hitting a one-month low, he said. glass nodeThis decline in revenue and fees before the halving could pose a serious threat to miners.
For mining to remain profitable, the price of Bitcoin needs to rise to new heights.
Source: Messari
Weighing Bitcoin’s Pros and Cons
Bitcoin’s outlook looked uncertain at press time. The number of addresses above 1 coin reached a record high of 192,000. This suggests that there is growing interest in Bitcoin among large investors.
While large addresses were showing interest in Bitcoin, the number of traders going long in Bitcoin was declining. As you can see from the image below, the number of traders holding long positions in Bitcoin has decreased in the last month.
On November 12th, 70% of top traders bought up Bitcoin. Since then, its value has declined, and at the time of writing, he was 53/19% of traders who were long in Bitcoin. coin glass.
Source: Coinglass
Another factor that can affect the price of BTC can be the incentives for short-term holders to sell their positions. In the image below, you can see that the ratio of Market Value to Realized Value (MVRV) has increased. This meant that selling BTC at press time would generate a profit.
Long-term holders and maximalists were not inclined to sell, but the narrowing gap between longs and shorts indicated that short-term holders would benefit from this trade. If Bitcoin yields to selling pressure, a slight drop in Bitcoin price is likely in the near future.
Source: Santimento
