JPMorgan likes these mining stocks to play the upcoming Bitcoin halving (2024)

FAQs

What is the reward of Bitcoin mining halving? ›

Once a halving event occurs, miners receive 50% fewer bitcoins as a subsidy reward for every block of transactions they mine and add to the blockchain. However, they continue to earn additional transaction fee rewards for each block mined as normal.

The much-anticipated bitcoin halving event has come and gone, quietly marking a historic moment in the world of digital assets. On April 19, 2024, the block reward for bitcoin miners was reduced by half, from 6.25 BTC per mined block to 3.125 BTC per mined block.

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.

The bitcoin (BTC) price is likely to weaken after the reward halving, a quadrennial event that slows the rate of growth in bitcoin supply and looks set to occur around April 19-20, Wall Street giant JPMorgan (JPM) said in a research report on Wednesday.

Despite this price increase, the halving poses a challenge for miners who must compensate for the reduction in mining rewards while simultaneously keeping costs down.

While miners can earn revenue from transaction fees, they earn the majority of their money from block rewards, which will essentially be cut in half after the halving, he says. “Miners need their revenues to be more than their costs, like any business,” Malekan says.

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

Bitcoin (BTC) Price Prediction 2030

According to your price prediction input for Bitcoin, the value of BTC may increase by +5% and reach $ 83,432.19 by 2030.

New coins emitted with each block are given to miners as a reward for the work. They also receive transaction fees. Currently, the miners receive 6.25 BTC per block.

The past three halvings – in 2020, 2016 and 2012 – have resulted in an average price increase of 16% over the 60 days that followed, according to data from the asset research firm 10x Research. The 2016 halving resulted in a decrease of 6% over the following 60 days, although it then rallied strongly throughout 2017.

Will Bitcoin halving affect other coins? ›

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's upcoming halving will reduce the reward for mining transactions by half, potentially constricting supply and influencing prices in a market that has already seen Bitcoin, Ethereum, and others like Furrever Token, make substantial gains.

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.

Bitcoin Price Prediction 2025

With the launch of potentially more Bitcoin-related financial services and the global adoption spark of Bitcoin, BTC prices will maintain a bullish trend in 2025. The cryptocurrency is expected to create a high of $140,449 with a low of $61,357.

New coins emitted with each block are given to miners as a reward for the work. They also receive transaction fees. Currently, the miners receive 6.25 BTC per block.

In comparison, the first Bitcoin mining difficulty adjustment after the halvings in November 2020, July 2016 and May 2020 came in at -2%, 0% and -6%, respectively. The second adjustments post-halving were even more pronounced at -12%, -5% and -9%, respectively.

Bitcoin pays out a mining reward each time a new “block” is entered into the permanent record of transactions. The reward shrinks every few years, but for now, it is 6.25 BTC, which in December 2022 was worth roughly $105,000 as Bitcoin hovered below $17,000.

Depending on where you sit, the halving is a vital event that will burnish bitcoin's value as an increasingly scarce commodity, or nothing more than a technical change talked up by speculators to inflate its price.