In the fourth Bitcoin halving, which took place in 2021, the scenario differed from the past occurrences in 2016, 2012, and 2009. The key distinction lay in the substantial increase in the number and size of Bitcoin wallets, leading to higher accumulation than before.
Crypto Stocks Rising in First Trading Hours Post-Bitcoin Halving
On Mondays right after Bitcoin’s halving event, crypto stocks experience a surge in the early hours of trading. The demand for these stocks significantly increases due to the optimistic outlook before the halving. Notably, the shares of crypto and Bitcoin mining companies witness a substantial upward trend.
On April 22, before the market opened, MicroStrategy (MSTR) stock experienced a significant increase of more than 5%. The current pre-market price is now above $1,225. However, just last week, MSTR took a hit and dropped over 20% due to several reasons: geopolitical tensions between Israel and Iran, market selling pressure on Bitcoin, and the executive chairman Michael Saylor disposing some of his Class A shares.
In the early market hours, Coinbase’s (COIN) and Robinhood Markets’ (HOOD) shares experienced gains of approximately 2.71% and 1.44%, respectively. Notably, both companies, similar to MicroStrategy, witnessed declines in their stock prices during the previous week.
Bitcoin mining stocks are experiencing a robust surge, aiming to build upon the double-digit percentage gains achieved in the previous week. Riot Platforms (RIOT) finished 10.13% up at $9.13 on Friday. In the early market hours on Monday, RIOT’s price was 5.81% escalated. Marathon Digital also saw a rise of 3.45% in pre-market trading after a weekly increase of 9.78%, which took its value to $16.50.
The stocks of other mining companies, such as CleanSpark (3.49%), Cipher Mining (3.91%), and Bitdeer Technologies (3.16%), have also seen gains. This upward trend in Bitcoin mining can be attributed to miners benefiting from an increase in rewards following the Bitcoin halving, contrasting the anticipated decrease in Bitcoin mining rewards due to the Runes protocol.
Bitcoin Miners Looks for Better Mining Alternatives
According to Fred Thiel, CEO of Marathon Digital, Bitcoin’s halving event encourages miners to upgrade to more energy-efficient computing systems to reduce costs. With each halving, the reward for mining Bitcoin is decreased by half, making it essential for miners to find ways to maintain profitability.
Bitcoin miners often have to sell their Bitcoins due to financial pressures and increasing mining complexity. Notably, approximately $2.4 million in transaction fees were incurred for the Bitcoin block 840,000, signifying the halving event as stated by CryptoQuant CEO Ki Young Ju.
The price of Bitcoin hovers around $66,000 at present, marking a noteworthy increase of over 1% within the past 24 hours. This level at $66,000 acts as a significant barrier for Bitcoin to confirm any additional upward momentum.
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2024-04-22 15:37