Buy Bitcoin Miners' Stocks Ahead of the Halving, Bernstein Says (2024)

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Buy Bitcoin Miners' Stocks Ahead of the Halving, Bernstein Says? ›

Bernstein recommends buying bitcoin miners Riot Platforms and CleanSpark ahead of the halving. Bitcoin's bullish trajectory to resume after the reward halving, Bernstein said. The broker maintained its cycle high forecast of $150,000 by 2025.

A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half. Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply. Bitcoin last halved on April 19, 2024, resulting in a block reward of 3.125 BTC.

Bitcoin halving is considered bullish because each event reduces the rate at which future bitcoins are created. This then boosts the scarcity and value of existing bitcoins. But a positive effect isn't guaranteed.

Halving reduces the supply of new bitcoins, which should in theory increase the price. It is an economic axiom that if demand for an asset remains stable while its supply decreases, its price should go up.

Understanding Bitcoin Halving

Bitcoin halving is a significant event in the Bitcoin network, where the reward for mining new blocks is halved. This means that miners receive 50% fewer Bitcoins for verifying transactions. Bitcoin halving occur approximately every four years, or after 210,000 blocks have been mined.

Our most recent Bitcoin price forecast indicates that its value will increase by 14.58% and reach $66,426 by May 03, 2024.

“Miners need their revenues to be more than their costs, like any business,” Malekan says. “What is likely to happen after the halving is that some miners will no longer be profitable, and they will stop mining.”

The historical correlation between halving events and the bitcoin price exists, with the price of bitcoin substantially increasing approximately six months after the halving days from 2012, 2017, and 2020.

Who owns the most bitcoin? ›

Michael Saylor's US-listed business intelligence firm is the biggest institutional holder of bitcoin with more than 214,000 coins, more than 1% of the total supply, according to Bitcoin Treasuries data. Bitcoin's current price of around $64,000 means MicroStrategy's crypto holdings are worth roughly $14bn.

When its supply is reduced through halving, and if the demand stays constant or increases, we often see a ripple effect on the prices of other cryptocurrencies.

Currently, Bitcoin is exhibiting a pre-halving retracement characterized by bearish signals and lateral market movements.

Bitcoin halving is when the reward for bitcoin mining is cut in half. Halving takes place every four years. The next halving is expected to occur sometime in 2028. The halving policy was written into bitcoin's mining algorithm to counteract inflation by maintaining scarcity.

For instance, after the first halving, the reward for bitcoin mining dropped to 25 BTC per block. The last halving should occur in 2140. At that point, there will be 21 million BTC in circulation and no more coins will be created. From there, miners will just be paid with transaction fees.

When its supply is reduced through halving, and if the demand stays constant or increases, we often see a ripple effect on the prices of other cryptocurrencies.

Bitcoin halving is an event where the number of generated BTC rewards per block is reduced by 50%, or cut in half. The next BTC halving event is expected to take place in April 2024.

Fourth halving: The Bitcoin fourth halving is anticipated to occur around mid-April 2024, reducing the block reward from 6.25 Bitcoins to 3.125 Bitcoins per block.