What to expect after Bitcoin's fourth halving?

What to expect after Bitcoin's fourth halving? 

  Halving is a scheduled event in the Bitcoin protocol, which occurs every 210,000 blocks mined, i.e. approximately every 4 years.  It has been two months since the last halving of the cryptocurrency, in April this year, and many are wondering what to expect after the fourth Bitcoin.  Half.   Expert expectations are high, and there are certain metrics we need to pay attention to to know which direction the market is headed.

  The Hashrate Index report delves into the topic, providing important information on metrics like Bitcoin Hashrate, Hashprice, Hashrate Forwards, and Bitcoin mining stocks.   One highlight is the tremendous adaptability that Bitcoin shows even when miners enter blocks worth 3,125 BTC.

  Find out why the Bitcoin halving is a unique event and one of the most important events related to this cryptocurrency.

  ‏

  Bitcoin hashrate and hash rate fluctuate

      Hashrate is an indicator of the strength of the blockchain network as well as its security

      Hashprice is a metric used by miners to determine potential profit

  The above are the two metrics that specialists pay the most attention to, and the retail price is being monitored because an immediate halving was expected, which did not happen.

  The hash price saw wild fluctuations in the days leading up to and after the Bitcoin halving, it's true, but it has stabilized at the current level of $50/hour/day.   This is where the hash rate comes into the picture, which saw positive metrics during the first quarter and then declined from 611 exah/s to 580 exah/s the following.   Now, it seems that it is gradually regaining part of the lost ground and is witnessing a clear rise.

  Of course, there are several explanations for this situation beyond Bitcoin's fourth halving.   Among them we can mention that in addition to the fact that miners' margins have been compressed, holidays are approaching (reducing the industrial consumption capacity of mines in regions of the world such as Texas, which usually threatens hash rate growth and is committed to it until 2024).

A few weeks ago, traders in hash markets thought that the hash price had bottomed out.   And obviously they were right, because after this sudden drop the retail price did not stop recovering.

  ‏

  ASIC markets discover their 'new' prices

  The ASIC market has seen a significant slowdown heading into the halving, with a noticeable decline in prices across many models.   As expected, the Antminer S21 price premiums increased, citing only one case, compared to other models.   That is, miners have adopted a strategic path directed towards more efficient hardware to mitigate the decline in income after the halving.

  With block support already reduced by half, it is imperative that miners equip their ASIC fleets with cutting-edge hardware.   Thanks to them, they will continue to compete in this “arms race”.

  This is how the 4-year Bitcoin cycle works. 

  ‏

  What are its effects in the short and long term?

  Forecasts and forecasts for 2024 and beyond

  Barring a significant rise in the price of Bitcoin and/or higher transaction fees, 2024 will be a difficult and challenging year for Bitcoin miners.   It will have a dominant role in the miner's results.

  In addition to improving the energy efficiency of their fleet with the latest ASIC models, and securing more favorable contracts, miners can use aftermarket firmware to improve their ASIC hardware.   This is a somewhat more conservative strategy but allows them to adopt more complex hedging strategies in which they do not invest as much.

  There are contexts such as the US and Canada, where M&A-driven consolidation is expected as companies benefit from the liquidation prices of ASICs and mining facilities.   Essentially, mining will become more integrated with energy systems and attempts to save energy.

  Disclaimer: The content and links contained in this article are for informational purposes only.   Zaoui does not provide legal, financial or investment recommendations or advice, nor does it replace due diligence of each party involved.   Zaoui does not endorse any investment or similar offers promoted here.   Some posts may be promoted by interested third parties.