Bitcoin Miners Are Working To Coordinate The Market Ahead Of Halving, $6,500 BTC/USD Low Point
- Bitcoin mining profitability has been rising, which could indicate preparation for the halving event.
- Filb recently pushed an analysis of the mining on the Bitcoin network, and how miners are changing the landscape.
The halving of Bitcoin’s mining reward is a scheduled event that all miners are aware of before they validate their first transaction. In the halving, the reward associated with mining is reduced by half for reaching different milestones in the blocks mined. The next expected halving is predicted to happen next year, and miners are now trying to coordinate the market, helping to maximize the revenue that they receive between now and then.
Bitcoin ended up experiencing substantial downward pressure after a volatile period, though analysts are still debating on the factors that are pushing the market in that direction. Filb Filb believes that Bitcoin will not experience lower lows this year, considering that miners are working to improve their profitability, and he believes that they are in control.
Summarizing his analysis, Filb Filb said,
“As Satoshi said himself rightly pointed out that commodity costs are likely to gravitate to production cost. Why? Because miners will sell into demand where revenue per unit > cost per unit. Likewise, collectively they are disincentivized to sell when revenue < cost.”
As he sees it, the Bitcoin miners who are deciding to sell their mined coin are likely to be the midterm action that the market is seeing, considering the many 12.5 BTC sell orders. This is the current mining reward per block, while the halving will reduce to 6.25 BTC next year. Filb Filb added,
“I was saying all the time in the bear market about these 12.5 BTC orders. They disappeared in the bull market this year and came back at 13K.”
In theory, he says that miners could be working to create a new halving bubble by contracting their selling before the halving occurs. In doing so, there would be a supply shortage with the potential to increase revenue per unit.
Previously, Cointelegraph reported on the renewed support for Bitcoin mining in 2019, and lows in profitability have paved the way for better results throughout the industry. With the lack of mining profitability, Filb Filb commented that weak players are being weeded out. In the last few weeks, mining difficulty has increased, which has also increased the Bitcoin network’s computing power.
Presently, Bitcoin is priced at $10,537.10, rising by 6.7% in the last 24 hours.