Bitcoin halvening is likely to trigger hashrate to plunge drastically

Bitcoin halving event is scheduled a week from now, and the market anticipations are running high. The market is expecting the hashrate to plunge drastically post halvening.

The Google search trend for bitcoin halving is showing a four-fold increase in comparison with the last event four years ago. The main reason predicted for the sell-off has been miner capitulation and sell-off due to an up-gradation to newer models. Crypto analysts are predicting a major plunge in the hashrate of the leading cryptocurrency. A crypto analyst said that the higher the price goes between now and then, the less the hashrate will drop. Still, it’s hard to imagine it rising to the level needed to avoid a major hash plunge, he added

Several miners will go out of business because of halvening. 

The bitcoin halvening event would not be easy on the BTC miners as several of them risk going out of the business. The reward for mining would not be enough for several small miners to sustain any profits, and therefore would have no choice but to close down. S9 BTC miners have been underwater since the start of the bear market in the late last year. With the current level of difficulty, the break-even cost for S17 miners is just under $10,000, which is the latest generation launched in March of last year. 

 

Bitcoin trades above the $9,000 mark

BTCUSD Chart
BTCUSD Chart

At the time of writing, the price of the leading cryptocurrency, bitcoin, is trading above the $9,000 mark once again. Last week, the price of bitcoin had nearly reached $9,500 but retraced to mid $8,000. Currently, bitcoin is changing hands at just above $9,000, with 4.9% up in the last 24 hours. Bitcoin is over 16% in the previous seven days. Bitcoin halving has been a highly debated subject in the crypto community as several believe that a bull run will follow the halvening, and some believe it will prove to be a “non-event.” Currently, the reward for each mined block is 12.5 BTC, but after the halvening, the reward would be reduced in half to 6.25 BTC. 

Check BTCUSD Chart on TradingView.com

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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