The forthcoming halving will reduce the new issuance by 14,000 BTC on a monthly basis, traditionally decreasing sell pressure from miners. However, the once-significant influence of halvings on Bitcoin prices seems to diminish as the new issuance becomes smaller relative to the total supply available for sale.

Bitcoin Halving Influence Wanes

Long-term holders (LTH) selling, for instance, has averaged 417,000 BTC per month in the last year, overshadowing the monthly issuance of 28,000. In contrast, CryptoQuant highlights that Bitcoin demand growth, particularly from large holders or whales, is emerging as the primary driver for higher prices post-halving.

This cohort of investors is currently showing the highest-ever demand growth, which has historically fueled price rallies.

“In previous cycles, Bitcoin demand growth from large holders or whales has spiked, fueling the price rally. Currently, demand growth is around the highest ever, around 11% month over month,” analyst at CryptoQuant told BeInCrypto.

Read more: Bitcoin Halving Countdown

Moreover, the demand for Bitcoin from permanent holders has outpaced issuance for the first time in history. This adds further fuel for a potential Bitcoin price rally after the halving.

Permanent holders now add as much as 200,000 BTC monthly to their balances. This is significantly more than the approximately 28,000 BTC monthly issuance, which will further decrease to about 14,000 post-halving.

CryptoQuant also points out that the monthly issuance of Bitcoin has dwindled to just 4% of the total Bitcoin available supply. This starkly contrasts the periods before the first, second, and third halvings, where issuance represented 69%, 27%, and 10% of the total supply, respectively.

Read more: What Happened at the Last Bitcoin Halving? Predictions for 2024

In summary, while the upcoming Bitcoin halving will reduce the new issuance of BTC, leading to less selling pressure from miners, the unprecedented demand growth from large holders and permanent holders is poised to be the key driver for higher prices post-halving.

The post Bitcoin Demand Will Push Price Up, Not the Halving: CryptoQuant appeared first on BeInCrypto.

Analysts like Arthur Hayes, Benjamin Cowen, and Peter Brandt forecast a potential downturn in Bitcoin’s price post-halving.

Will Bitcoin Crash After Halving: Analysts Weigh in

Arthur Hayes, a seasoned voice in the crypto sphere, presents a complex view of the Bitcoin halving. Despite the general optimism, he predicts a market downturn.

“The narrative of the halving being positive for crypto prices is well entrenched. When most market participants agree on a certain outcome, the opposite usually occurs. That is why I believe Bitcoin and crypto prices in general will slump around the halving,” Hayes explained.

Read more: Bitcoin Halving Cycles and Investment Strategies: What To Know

Moreover, Hayes highlights the broader economic backdrop. He notes the tighter dollar liquidity and the onset of Quantitative Tightening (QT) by the Federal Reserve, which will reduce the money supply.

Consequently, he expects a “precarious period for risky assets” in late April. Yet, he predicts a market boost post-May 1, following a Federal Reserve meeting, due to an anticipated liquidity injection.

“From now until May 1, I will be in a no-trade zone. I hope to return in May with dry powder ready to deploy to position myself for the bull market to begin in earnest,” Hayes remarked.

Benjamin Cowen, another crypto analyst, concurs with the cautious outlook. He draws parallels between the upcoming halving and the 20% market correction following the spot-Bitcoin ETF approvals in January.

“Usually these patterns do not repeat exactly, but just showing it here in case something similar happens once again,” Cowen said.

Veteran analyst Peter Brandt supports Cowen’s view, acknowledging recurrent patterns in Bitcoin’s bull markets.

Read more: Bitcoin Price Prediction 2024/2025/2030

This sentiment aligns with Monday’s ETF flow data, which showed a negative trend despite Bitcoin’s price reaching $72,000. For instance, the GBTC saw outflows of $303.3 million, contributing to a total negative ETF flow of $223.8 million. Whereas BlackRock’s IBIT reported just $21.3 million in inflows.

This data might hint at a broader market hesitancy or profit-taking behavior.

Additionally, the halving will likely exert pressure on Bitcoin miners. With the reward halving, miners’ earnings, or hashprice, will likely plummet. Hence, they might resort to selling some of their Bitcoin reserves to meet operational expenses.

The post Peter Brandt, Arthur Hayes, Ben Cowen: Bitcoin Will Drop After the Halving appeared first on BeInCrypto.

Jan3, a prominent Bitcoin technology firm, disclosed this development regarding the Latin American nation.

Costa Rica Debates Legal Use of Bitcoin

Jan3 stated that the absence of comprehensive legislation governing the country’s crypto ownership, trading, and investment impacts the ongoing debate. The firm noted that the key concerns revolved around effective Know Your Customer (KYC) and Anti-Money Laundering (AML) practices in the emerging industry.

However, amidst these debates, there is a sense of optimism regarding the potential for robust crypto regulations in the future. Francis Pouliot, CEO of BitcoinBulls, echoes this sentiment by showcasing the widespread use of Bitcoin in everyday transactions through a documentary video.

Pouliot illustrated the ease of using BTC to purchase goods in rural areas where merchants may not directly accept Bitcoin.

“This afternoon I’m going to purchase a gym membership with Bitcoin directly. I’m also going to buy a surfboard with Bitcoin, will try to orange pill the shop but if they don’t want I’ll still pay with Bitcoin and have the fiat sent to them via instant SMS-based bank transfer,” Pouliot added.

Meanwhile, Congresswoman Johanna Obando is a leading advocate for Bitcoin within Costa Rica. The lawmaker is pushing the flagship digital asset’s transformative potential and is actively “steering these debates to the right side of the conversation.”

JAN3 also highlighted the considerable opportunities for Bitcoin mining in Costa Rica. It argued that this venture could position the nation as a renewable energy leader in Latin America.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Moreover, the tourism sector, a significant contributor to Costa Rica’s GDP, is expected to be crucial in driving Bitcoin adoption. Ventures like Bitcoin Jungle could be potential models for future businesses embracing cryptocurrency by facilitating Bitcoin payments for tourism-related services within the country.

Costa Rica’s engagement with Bitcoin mirrors broader trends in Latin America, where cryptocurrency adoption has steadily increased. The region’s economic instability, failed monetary policies, and rampant inflation have fueled this growth.

The post Costa Rica’s Bitcoin Future: Legal Clampdown on the Horizon appeared first on BeInCrypto.

The timing of the halving is particularly intriguing as it unfolds amidst a bullish trend in Bitcoin’s price. Analysts anticipate this halving could substantially influence Bitcoin’s trajectory in the coming years.

Is Now the Best Time To Buy Bitcoin?

Bitcoin surged by 67% in the initial quarter of 2024, driven predominantly by heightened demand for Bitcoin exchange-traded funds (ETFs). The substantial price growth already experienced now prompts discussions regarding the potential impact of Bitcoin halving.

Some analysts argue that Bitcoin remains undervalued, foreseeing a potential climb to $100,000 within the year. The remarkable performance of the asset thus far, coupled with anticipated rate cuts from the Federal Reserve, renders this projection plausible.

“We could see a brief correction, but as central banks ease up on monetary policy, that should drive both direct Bitcoin sales and ETFs because Bitcoin tends to behave like a tech stock or speculative asset, which generally see gains around easing of monetary policy. My estimate is that Bitcoin could reach anywhere from $100,000 to $150,000 in 12 to 18 months post-halving,” Jason Fernandes, co-founder at AdLunam told BeInCrypto.

Conversely, other experts suggest that the market has already factored in the halving. Yet, with Bitcoin’s supply poised to decrease and Bitcoin ETF-driven demand steadily rising, some view the current juncture as opportune for Bitcoin investment.

Read more: Bitcoin Halving Countdown

Researchers at NYDIG contend that the impact of the Bitcoin halving on prices may be marginal compared to the influence of ETF demand. Consequently, they anticipate that the approximately 450 BTC in daily supply will not exert significant pressure on prices.

“While the halving event may not serve as an immediate price catalyst, historical data suggests that it plays a vital role in shaping Bitcoin’s price cycles. Typically, there is a lead-up to the halving followed by substantial returns post-event. With the current positive price performance pre-halving, investors have reasons to be optimistic about the future potential of Bitcoin,” NYDIG’s Greg Cipolaro wrote.

Nevertheless, historical data reveals a diminishing percentage increase following each halving. After the first halving, Bitcoin soared from $13 to $652, marking a staggering 4,802% surge. Subsequent halvings have yielded reduced percentage increases, hinting at a similar pattern this time.

Read more: Bitcoin Price Prediction 2024/2025/2030

Still, Fernandes told BeInCrypto that Bitcoin’s performance post-halving has differed due to different macro-economic events.

“2012’s Bitcoin halving event saw limited investment by tech-savvy individuals and niche communities. In 2016 we saw an increased awareness of Bitcoin as an alternate currency that would withstand economic instability. The pandemic year of 2020 was a bit of an outlier as the halving was offset by a terrible overall financial situation. In sum. I would say the effects of the halving tend to be evenly split between macro-economic factors prevalent at the time,” Fernandes explained.

The nuanced perspectives highlight a broader consensus that, while the immediate impact of the halving on BTC’s price may be debatable, the event is crucial for setting the stage for future price cycles. Still, the major effects of this event will be seen on miners’ profitability amid escalating energy expenses.

However, insights from IntoTheBlock indicate that miners’ revenue, measured in USD, is presently at a peak, propelled by Bitcoin’s rising value. If the halving precipitates further value appreciation, the diminished rewards may have negligible repercussions on miners.

The post Bitcoin Halving Could Be a Green Light for Investors appeared first on BeInCrypto.

Indeed, this initiatives reflect the evolution of the cryptocurrency investment and highlight the sector’s potential for continued growth and integration into wider financial markets.

Bitcoin ETFs Rise in US and Australia

BlackRock, the world’s largest asset manager, has expanded its spot Bitcoin exchange-traded fund (ETF), IBIT, in the US. The firm added five new Authorized Participants (APs), enhancing the fund’s accessibility and liquidity for investors. These include ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC.

These entities are essential in the ETF’s operation, facilitating the creation and redemption of shares. With a total of nine APs, IBIT, operational since January 11, 2024, stands as a signal of the growing confidence in and demand for Bitcoin as a legitimate asset class.

Indeed, it is part of a wider acceptance of Bitcoin within mainstream financial market, highlighted by the notable investor interest in comparable funds such as Fidelity’s Wise Origin Bitcoin Fund (FBTC). Both IBIT and FBTC have made impressive strides, amassing investments totaling 259,381.19 BTC and 149,339.22 BTC, respectively, to date.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Meanwhile, in Australia, Monochrome Asset Management is making strategic moves by shifting its flagship Monochrome Bitcoin ETF application to Cboe Australia. By aligning with Cboe, known for its extensive history and innovation in financial markets, Monochrome aims to tap into the vibrant Asian investment landscape.

This decision underlines Monochrome’s commitment to offering investors a novel way to diversify their portfolios with digital assets.

“We are proud to work with Cboe Australia to bring Monochrome’s new Bitcoin ETF to market, expanding the investment universe for Australian Investors. As leaders in digital assets globally, their established track record and commitment to innovation and safe market accessibility aligns with Monochrome’s strategic objectives” Jeff Yew, CEO at Monochrome, said.

The addition of heavyweight financial institutions as APs for BlackRock’s IBIT and Monochrome’s strategic decision to list its Bitcoin ETF on Cboe Australia demonstrates the increasing mainstream acceptance of Bitcoin.

The post Bitcoin ETFs Gain Further Exposure in the US and Australia appeared first on BeInCrypto.

This figure marks a significant milestone in BTC’s journey, especially as it approaches the much-anticipated halving. PlanB, a prominent figure within the crypto community, shared insights into this phenomenon, providing a prediction about Bitcoin’s future valuation.

$200,000 Is a Conservative Target for Bitcoin

At the heart of PlanB’s Bitcoin price prediction is the Stock-to-Flow (S2F) model. It anticipates significant price movements in conjunction with halving events by comparing the current supply of Bitcoin against the flow of new BTC entering the market. These are periods when the reward for mining Bitcoin transactions is halved, thus reducing the supply of new coins.

According to PlanB, BTC’s alignment with the S2F model’s projections, especially before a Bitcoin halving, is a critical indicator of its future performance. The transition from “blue to red” dots in PlanB’s model marks the shift into new phases of the market cycle, with red indicating a bull market.

This shift is predicted to continue based on historical patterns, signal growth, and sustained bullish momentum.

PlanB suggests that while the market will face volatility, with potential dips of 20-30%, the overall trajectory remains upwards.

“We will have a steep increase in price from here, [potentially] $100,000 this year. [But] note that this model jumps in April to roughly $500,000, which is the average price level in this halving period. It [may] take a couple of months or almost a year to reach that level, so the next top will not be this year, but in next year, 2025,” PlanB explained.

Regarding the next market top, some anticipate Bitcoin reaching $200,000. However, according to PlanB, such a figure might actually fall short of expectations. From an S2F perspective, he is looking at a target significantly above the average, possibly exceeding $500,000, to align with the model’s projections.

Read more: Bitcoin Price Prediction 2024 / 2025 / 2030

A key factor bolstering this optimistic outlook is the behavior of on-chain indicators, such as the realized price and the two-year realized price, demonstrating remarkable growth during bull markets. The five-month realized price, in particular, establishes a new strong support level at $60,000.

“The five-month realized price, that’s the short-term holder price, is at $60,000 right now. That would be the aggressive floor because if we look at previous bull markets then you see Bitcoin price doesn’t go below [the five-month realized price]. So that’s my personal aggressive floor that I think we will not go below again,” PlanB added.

Furthermore, the relative strength indicator (RSI) presents an interesting narrative. Currently, at its highest level before a halving, the RSI suggests that Bitcoin is entering this phase with unprecedented strength. This departure from the pattern of diminishing returns in previous cycles could indicate a shift towards exponential growth.

In summary, Bitcoin stands at a pivotal moment, supported by a confluence of indicators suggesting its growth is far from over.

The post Bitcoin Will Not Fall Below $60,000 Again: PlanB appeared first on BeInCrypto.

In a report titled “The Rise of Bitcoin Ordinals,” the firm’s digital assets arm, Franklin Templeton Digital Assets, explores the impact of this technology on the Bitcoin network.

Ordinals and Runes: Bitcoin’s New Wave of Innovations

Franklin Templeton highlights a “renaissance” in Bitcoin development spurred by Ordinals, new token standards (BRC-20, Runes), Layer 2 solutions, and DeFi applications. Ordinals, a method for inscribing data directly onto the Bitcoin blockchain, have exploded in popularity. This innovation fuels a surge in NFT activity on the network.

Furthermore, Franklin Templeton Digital Assets outlined the surge of Ordinal collections in the NFT market regarding volume and market capitalization. NodeMonkes, Runestone, Bitcoin Puppets, Ordinal Maxi Biz, and Bitmap are the top 5 collections, according to the report.

The company’s market analysis, shows that Bitcoin-based NFTs have surpassed their Ethereum counterparts in terms of growth multiple times since November 2023. A significant highlight from this analysis is the performance of Bitcoin Ordinals, which secured about a 50% market share in December 2023.

Read more: Top 5 BRC-20 Platforms To Trade Ordinals in 2024

Although the report mainly focuses on Bitcoin Ordinals, the crypto community also showed excitement from seeing Runes mentioned.

“Glad to see Runes are on their radar as well,” a member of the Ordinals community, Leonidas, wrote.

Runes is a fungible token standard from Bitcoin developer Casey Rodarmor. He is also the figure who came up with the Ordinals’ idea. The Rune protocol is set to launch on Bitcoin’s mainnet following the upcoming halving.

Speaking of optimism in Bitcoin Ordinals, Bobby Lee, founder of Ballet, expressed his thoughts in an August 2023 BeInCrypto interview. He views Ordinals as evidence of Bitcoin’s open, permissionless nature.

“I think [Ordinals] shows that Bitcoin is really for everyone,” Bobby Lee said.

In its previous report, Franklin Templeton pointed to an overall NFT market recovery at the end of 2023. Based on their analysis, the recovery was largely attributed to the Bitcoin price rally and Ordinal activity.

However, despite the optimism, the price of ORDI, a token associated with Ordinals, has seen a 32.4% decline in the past 30 days.

Read more: Bitcoin NFTs: Everything You Need To Know About Ordinals

The fresh perspective from Franklin Templeton Digital Assets reaffirms growing institutional interest in Bitcoin and related digital assets.

The post Asset Manager Franklin Templeton Examines Bitcoin’s Ordinal Wave appeared first on BeInCrypto.

This phenomenal growth pushed Bitcoin to a record high of $73,000 in March, creating new billionaires.

17 Crypto, Bitcoin Billionaires

A new list of the world’s billionaires reveals a significant uptick in the number of individuals achieving billionaire status through cryptocurrency. At least 17 were noted this year, up from 9 the previous year, representing a nearly 50% increase.

Collectively, these crypto moguls command a staggering $93 billion in wealth. This wealth spans crypto assets, stock holdings, and private assets, marking a substantial leap from the $37 billion reported last year.

Changpeng Zhao, the founder and former CEO of Binance, remains at the pinnacle of this elite group. Despite legal battles, including a guilty plea to US money laundering charges, Zhao’s estimated net worth has surged to $33 billion from $10.5 billion, making him the standout crypto billionaire of the year.

The success stories extend beyond Zhao. Michael Saylor of MicroStrategy and Brian Armstrong of Coinbase have seen their fortunes swell to $4.4 billion and $11.2 billion, respectively, thanks to the surging stock values of their companies.

Both firms have experienced a fourfold increase in their share prices over the last twelve months, reflecting the booming interest in digital currencies.

Read more: Who Owns the Most Bitcoin in 2024?

This year’s list also welcomes newcomers like Giancarlo Devasini, Paolo Ardoino, Jean-Louis van der Velde, and Stuart Hoegner, key figures in the controversial yet highly profitable stablecoin issuer Tether. Veterans of the crypto market, such as the Winklevoss twins, venture capitalist Tim Draper, and Ripple co-founder Jed McCaleb, continue to feature prominently, their fortunes buoyed by the market’s bullish turn.

Here is the full list of the top crypto and bitcoin billionaires:

1. Changpeng Zhao
2. Brian Armstrong
3. Giancarlo Devasini
4. Michael Saylor
5. Paolo Ardoino
6. Jean-Louis van der Velde
7. Chris Larsen
8. Fred Ehrsam
9. Matthew Roszak
10. Jed McCaleb
11. Tyler Winklevoss
12. Cameron Winklevoss
13. Mike Novogratz
14. Stuart Hoegner
15. Tim Draper
16. Joe Lau
17. Nikil Viswanathan

The narrative of crypto’s rising billionaires reflects the sector’s rapid evolution and its emerging role in reshaping the global financial system.

The post Crypto, Bitcoin Billionaires Increase by 50% in One Year appeared first on BeInCrypto.

This initiative aims to enhance the platform with faster and more cost-effective Bitcoin transactions, an important step towards improving efficiency.

Coinbase to Integrate the Bitcoin Lightning Network

The Bitcoin Lightning Network, a Layer 2 payment protocol, enables quicker transactions than Bitcoin’s primary network by reducing the blockchain’s burden. Lightspark, which specializes in providing access to the Lightning Network, has been working with Coinbase to implement this technology.

Through its software, Lightspark simplifies the integration and management of the Lightning Network for institutions. It offers a suite of tools designed for seamless transactions. The company boasts an AI-driven engine that optimizes liquidity and transaction routing.

The partnership entails Coinbase utilizing Lightspark’s remote-key signing feature. Therefore, Coinbase will retain control over the Lightning signing keys while Lightspark manages the node infrastructure. This setup is designed to scale effectively, offering a reliable node service with comprehensive functionality through an intuitive interface.

This allows Coinbase to focus on enhancing user experience without the need to manage a large-scale Lightning Network implementation.

“Coinbase is committed to making the global financial system faster and more efficient. We’re excited to partner with Lightspark to eliminate payment barriers and enable faster and cheaper Bitcoin transactions through support for the Bitcoin Lightning Network,” Shan Aggarwal, Coinbase VP of Corporate & Business Development, said.

The adoption of the Lightning Network by Coinbase is anticipated to significantly impact its operational efficiency and customer experience, particularly in terms of transaction speed and cost. It also marks a notable development for the Lightning Network, potentially increasing its usage and visibility within the cryptocurrency ecosystem.

Read more: The Best Bitcoin Lightning Network Wallets In 2024

This integration paves the way for Bitcoin’s new payment applications and liquidity options, aligning with broader trends in cryptocurrency adoption and technology advancement.

The post Coinbase Readies to Integrate the Bitcoin Lightning Network appeared first on BeInCrypto.

The Turkish Statistical Institute’s recent data highlights a 3.16% monthly inflation rise.

Turkish Citizens Resort to Crypto Amidst Soaring Inflation

Key sectors such as education, communication, and hospitality have driven the surge in inflation, with respective month-on-month increases of 13%, 5.6%, and 3.9%. The education and hospitality sectors witnessed the highest annual inflation, recording 104% and 95%, respectively.

Consequently, Turkey’s central bank has aggressively hiked interest rates, now at 50%, to tackle the inflation that stubbornly remains above the desired single-digit target.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

Moreover, a significant adjustment in the minimum wage at the start of 2024 has exacerbated inflationary pressures. This policy doubled the minimum wage from the previous year, leading to a complex economic scenario.

Despite a slight easing in March, experts like Nicholas Farr from Capital Economics suggest that stringent monetary and fiscal policies are essential for stability.

“The latest inflation figures do little to change our view that further monetary tightening lies in store and that a more concerted effort to tighten fiscal policy will be needed too,” Farr said.

The Turkish Lira has depreciated nearly 40% against the dollar over the last year, highlighting the currency’s vulnerability. Conversely, Bitcoin has experienced a significant rise in Turkey, reaching peak values since June 2023.

A survey revealed that 58% of Turkish investors view crypto as a long-term wealth-building tool. Additionally, 37% regard it as a hedge against the local currency’s depreciation.

With Bitcoin at the forefront, Ethereum and stablecoins also see substantial interest among Turkish investors. This shift to digital currencies is partly due to the Lira’s devaluation against the US dollar, prompting many to seek refuge in cryptocurrencies.

The Turkish government is responding to the crypto trend with regulatory measures. Finance Minister Mehmet Şimşek indicated that comprehensive crypto regulations are nearing completion.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

These regulations will subject crypto exchanges to stringent oversight akin to that of traditional financial institutions. The Capital Markets Board (CMB) of Turkey will enforce these regulations, ensuring operational, organizational, and capital compliance alongside robust IT infrastructure.

The post Bitcoin Nears All-Time Highs in Turkey as Inflation Climbs 68.5% appeared first on BeInCrypto.

This upgrade is strategically timed to precede the expected Bitcoin halving event, which is anticipated to occur on April 20, 2024.

Bitfarms’ Bold Leap in the Anticipation of Bitcoin Halving

Bitfarms has confirmed the acquisition of new mining equipment as part of its fleet upgrade and expansion plan. According to Geoff Morphy, President and CEO of Bitfarms, the company secured 28,000 Bitmain T21 miners in March.

These miners were obtained through a purchase option. Additionally, they acquired an extra 19,280 Bitmain T21 miners, 3,888 Bitmain S21 miners, and 740 Bitmain S21 hydro miners.

“Together, with our 35,888 Bitmain T21 purchases and farm expansions announced in November, these new 87,796 miners are sufficient to reach 21 EH/s by year-end, with greater operating efficiency,” Morphy added.

Read more: The Best Free Bitcoin Mining Methods in 2024

Ben Gagnon, Chief Mining Officer at Bitfarms, shared insights into the immediate impact of the fleet upgrade.

“As we enter the Halving, we remain focused on our 2024 transformational fleet upgrade and expansion plan, which triples our hashrate to 21 EH/s, increases our targeted operating capacity by 83% to 440 MW, and improves our fleet efficiency by 38% to 21 w/TH. … Bitfarms is well positioned, with a strong balance sheet, to execute on our growth plans and capitalize on opportunities in the upcoming bull market and beyond,” Ben Gagnon, Bitfarm’s Chief Mining Officer, said in a statement.

Besides announcing its latest upgrade, Bitfarms also reported its performance increase in its March 2024 update. Despite challenges such as grid curtailment programs and the need for facility maintenance, the company achieved a 35% increase in its hashrate compared to the previous year.

During this reporting period, Bitfarms successfully mined 286 BTC.

Embracing Efficiency: The New Era for Bitcoin Miners

The broader context of Bitfarms’ upgrade comes amidst a wave of strategic moves by other major Bitcoin mining companies, such as CleanSpark. In early February 2024, CleanSpark also announced significant investments in mining infrastructure.

As Bitcoin halving will cut miner rewards in half while mining costs will increase, many believe this will significantly impact the mining industry. A January 2024 study by CoinShares reveals that miners with substantial Bitcoin holdings and better capitalization tend to fare better in bullish markets.

However, those with limited cash reserves and high operational costs per Bitcoin are more vulnerable to declines in Bitcoin’s price.

Read more: How Much Electricity Does Bitcoin Mining Use?

“Riot, Marathon, Bitfarms, and Cleanspark are best positioned going into the halving. One of the main problems miners have is large SG&A costs. For miners to break even, the halving will likely force them to cut SG&A costs, otherwise, they could continue to run at an operating loss and having to resort to liquidating their HODL balances and other current assets,” the analysts at CoinShares wrote.

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The recent dip also marks Bitcoin’s lowest price point for the past seven days.

Spot Bitcoin ETFs Outflows Stir Market Concerns

Analysts are linking the recent downturn to outflows from US-traded spot Bitcoin exchange-traded funds (ETFs).

According to Farside data, spot Bitcoin ETFs have experienced a cumulative outflow of $110.2 million during the early Asia market. ARK 21Shares Bitcoin ETF (ARKB) has emerged as the largest contributor to this trend, with an $87.5 million outflow. This development is particularly intriguing given that Grayscale Bitcoin Trust (GBTC) has long stood in spot Bitcoin ETF outflows since March 15, 2024.

It’s important to highlight that the data, which appeared during early Asia market hours, was incomplete. Specifically, it didn’t include BlackRock’s iShares Bitcoin Trust (IBIT), which has seen consistent inflows during the same period.

Nonetheless, experts believe even this partial picture could be influencing market sentiment.

“From an algorithmic trading perspective, bots can basically auto-scrape this data and buy and sell based on this,” Shiliang Tang, president of Arbelos Markets, elaborated.

Reflecting the most recent updates, which now incorporate IBIT data, the cumulative flows for spot Bitcoin ETFs have turned positive, registering $40.3 million in inflows. Similarly, the price of Bitcoin has started to show signs of recovery, albeit briefly.

Read more: What Is a Bitcoin ETF?

However, the spot Bitcoin ETF outflows might not be the only reason for Bitcoin’s drop. As reported earlier by BeInCrypto, the yields on Treasury bonds have risen, causing hopes for interest-rate cuts by the Federal Reserve in May to fade.

Market analysts are now closely watching the Federal Reserve’s upcoming decisions. According to data from the CME group, there is a 95% probability that the Fed will maintain its target rates in the May meeting.

Despite the current downturn, market analysts remain optimistic about Bitcoin’s prospects, particularly in anticipation of the upcoming halving event scheduled for April 20, 2024.

Read more: Bitcoin Halving Cycles and Investment Strategies: What To Know

Mark Yusko, CEO and Chief Investment Officer at Morgan Creek Capital, expressed optimism during a CNBC interview. Yusko predicts that Bitcoin’s price could double to $150,000 this year.

“The big move happens post-halving. It starts to become more … parabolic toward the end of the year. And, historically about nine months after the halving, so sometime toward Thanksgiving, Christmas, we see the peak in price before the next bear market,” Yusko explained.

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