Supply Shock Looms For BTC as BTC Miners Start to Feel Post-Halving Tension
Bitcoin miners, including Riot Platforms and Marathon Digital, are facing pressure due to the block reward halving on April 19, 2024. The Bitcoin network pre-programmes these updates every four years.
They usually result in a supply shock, leading to a bull market and new highs for crypto. Bitcoin is currently holding steady above the $60k price support, but the market is uneasy due to a lack of immediate external stimuli. The halving of Bitcoin and the approval of spot exchange-traded funds (ETFs) have played a significant role.
The early 2024 rally was above $40k. The daily supply of the largest crypto by market capitalization has dropped from 900 BTC to just 450 BTC, affecting miners directly. The halving alone stands to cost miners $10 billion in revenue if the price stays stable. However, the smaller block reward leads to a supply shock, leading to a major appreciation for BTC.
(With inputs from Shikha Singh)
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