Grayscale: Bitcoin Miners to Lean on Ordinals for Revenue Boost as Halving Cuts Rewards
In the coming months, Bitcoin is set to undergo a significant event known as “halving,” which will reduce the reward for Bitcoin miners who successfully complete a block.
This event, scheduled for mid-April 2024, has historically been viewed as a bullish signal for Bitcoin (BTC), as sustained price increases have often followed previous halvings.
However, analysts at Grayscale cautioned that price bumps post-halving can be influenced by various factors beyond the simple stock and flow analysis.
Grayscale analysts pointed out that while scarcity can impact price, other elements, such as broader macroeconomic conditions, also play a role.
They highlighted the example of Litecoin (LTC), a cryptocurrency with a similar halving mechanism to Bitcoin, which did not consistently experience price appreciation after its halving events.
The report suggested that factors beyond scarcity must be considered when analyzing post-halving price movements.
A lot of great questions on if #miners are going to rally now or post halving.
IMO the answer is both.
The halving is not what drives miner price, the price of #Bitcoin is primarily what drives miner price. If anything the halving will obviously be bad for miners from a…
— Freedom By 40 (@Freedom_By_40) February 10, 2024
The impending halving presents a significant challenge for Bitcoin miners, as the majority of their revenue currently comes from block rewards.
With reduced block rewards and the growing mining difficulty that reached an all-time high last year, miners may find themselves in a tense position.
To prepare for the upcoming shift, miners have been selling off coins and raising capital, including a planned $750 million equity raise by miner Marathon Digital in the last quarter of
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