Bitcoin: Halving in April and forecasts for miners – what will the future bring?
Fidelity Digital Assets Warns Miners of Potential Losses if Bitcoin Price Remains Below $80,000 After Upcoming Halving in April
Fidelity Digital Assets is warning of potential losses for cryptocurrency miners if the price of Bitcoin does not surpass the $80,000 mark after the upcoming halving in April. The company has published a market forecast for 2024, addressing Bitcoin’s development, the miners’ situation, and future perspectives.
Optimistic Narratives Due to Adoption in Latin America and Approval of Bitcoin ETFs by the US SEC
The increasing optimism surrounding the cryptocurrency market stems, among other factors, from the growing interest of Latin American countries, as well as the decision of the U.S. Securities and Exchange Commission (SEC) to approve Bitcoin ETFs.
April Halving – Reduction in Mining Rewards
The upcoming halving in April will lead to a 50% reduction in block rewards, resulting in decreased earnings for miners. Current Bitcoin prices above $45,000 have raised miners’ average revenues to $40 million, but to sustain profits, the price must reach $80,000.
Increased Interest in Bitcoin Ordinals
The rise of Bitcoin Ordinals has helped miners recoup losses, creating new revenue streams. Fidelity predicts greater interest in Bitcoin Ordinals in 2024, which could increase fees for miners, ultimately benefiting the cryptocurrency network.
Potential Benefits for Miners from Bitcoin Technology
Despite concerns about blockchain congestion and rising transaction fees, increased activity brings benefits to miners and supports transaction metrics. Bitcoin’s technology offers new opportunities, potentially boosting fee revenues and supporting miners in the long run.
The above information from the world of cryptocurrencies highlights the complexity of the Bitcoin mining environment and the impact of external factors on potential losses or gains. It is crucial to monitor market trends and adjust investment strategies in the cryptocurrency industry to minimize the risk of capital loss.
