Bitcoin: Public Mining Benefits Post Halving, BTC/IDR Potentially Fluctuating

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Bittime - The important event that crypto market players have been waiting for, namelythe Bitcoin (BTC) halving, is getting closer. The halving which is scheduled to take place on April 19 2024 is expected to have an impact on Bitcoin mining, especially for public players.

Bitcoin Price Analysis, Will BTC/ IDR Also Lose Money?

According to analysts from JPMorgan, this event has the potential to increase the dominance of Bitcoin mining companies listed on the stock exchange. Their latest report says that Bitcoin miner concentration is “likely to increase” post-halving, but publicly traded entities will emerge as winners.

A team of analysts led by Nikolaos Panigirtzoglou estimates that the Bitcoin network could experience a 20% hashrate drop post-halving, as inefficient mining rigs will stop operating. JPMorgan predicts the production cost range could drop to $42,000.

They take average electricity costs into account, but note that some miners may have different costs depending on the location and scale of their mining activities.

The analyst wrote, “Bitcoin miners with below-average electricity costs and more efficient rigs will likely survive, while those with high production costs will struggle.”

Bitcoin (BTC) price , they added, could hover around $42,000 after the post-April halving “euphoria”. Currently, ahead of the halving, Bitcoin is around $60,000, reaching a high not seen since November 2021.

BTC Technical Analysis Today

Source: Bittime

On March 1, 2024, based on today's Bittime market, the price of BTC was observed to have decreased by 1.05% in 24 hour trading, with the highest ATH reaching IDR 1,000,871,402 . Currently the price of BTC to IDR is IDR 961,106,167.

Although analysts predict a potential correction in BTC prices after reaching $60,000, currently the upward trend is still dominant. The Relative Strength Index (RSI) indicator is at level 68, which indicates that BTC is in the 'overbought' region.

However, current price movements are still supported by high trading volume. If BTC manages to break the resistance at $60,000, the next resistance level is at $64,000. Conversely, if the support at $55,000 is broken, BTC could potentially fall to the $50,000 level.

Also Read How to Buy Crypto:

BTC Halving History

The halving next April marks the fourth event, and historically Bitcoin prices have increased in the following months. However, this momentum usually takes time.

Block rewards will drop to 3,125 BTC from 6.25 BTC in less than a month, which will also put financial pressure on mining companies as rewards decrease and profitability shrinks.

Blockworks previously reported that the sector could see consolidation as miners look to reduce electricity costs and raise capital.

Analysts at JPMorgan align with the experts, adding that stock exchange-listed mining companies could be well positioned post-halving.

Impact On Share Prices Of BTC Public Mining Companies 

There are several publicly listed Bitcoin mining companies, including Marathon, Riot, CleanSpark, and Hut 8.

Panigirtzoglou's team has several factors that support this conclusion. First and foremost, large-scale mining operations owned by publicly traded companies allow them to reduce overhead costs.

Additionally, public miners tend to have standing agreements with power companies, "which along with a more sustainable energy mix helps them lower electricity costs, a major component of the overall cost of producing Bitcoin."

Lastly, "exchange-listed mining companies have access to equity markets. In fact, they have raised larger amounts of equity capital in recent quarters... to fund their operations through the purchase of more efficient mining rigs," the analysts wrote .

In 2022 – two years after the last halving – stock exchange-listed mining companies saw their shares increase as Bitcoin prices declined, making it even more difficult for private and small-scale miners to compete. Analysts believe this scenario could happen again.

"We expect the share of miners listed on exchanges to increase post-halving, especially if our prediction of Bitcoin prices dropping towards $42,000 after April comes true," they concluded.

Also Read: Buy Bitcoin Before or After the Halving? Here's the Guide!

Conclusion

It should be noted that JPMorgan's predictions regarding the post-halving price of BTC/IDR are speculative and influenced by various dynamic factors outside the analyst's control. Investors are advised to always conduct independent research and consider various perspectives before making an investment decision.

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How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements  of Bitcoin (BTC ) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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Bitcoin (BTC) Today: Price Skyrockets, Bitcoin Mining Stocks Drop?

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.