Bitcoin miners ramp up computing power ahead of halving event
Bitcoin miners are gearing up for the upcoming halving event by increasing their computing power to record levels. The mining difficulty for Bitcoin has reached a new all-time high of 86.4 trillion, as companies invest heavily in generating more computing capacity.
This surge in mining difficulty comes as Bitcoin is set to undergo a code change on April 20, which will result in the halving of block rewards. Miners are racing to accumulate as much Bitcoin as possible before the rewards are reduced to 3.15 BTC, cutting daily issuance in half.
According to data from btc.com, mining difficulty has skyrocketed by 600% since the last halving in 2020. This continuous uptrend in mining difficulty indicates the intense competition among miners to secure their income source before the halving event.
Market volatility expected post-halving
While historical data suggests that Bitcoin prices may experience a short-term decline following the halving, experts are divided on the long-term impact. Bakhrom Saydulloev, Mercuryo product lead, warns of a potential market sell-off as miners liquidate their Bitcoin holdings to cover operational costs.
However, the introduction of spot Bitcoin ETFs could provide a boost to the cryptocurrency market, attracting more investors and increasing cash flow into Bitcoin. With over $200 billion in trading volume in less than four months, spot Bitcoin ETFs could play a significant role in shaping the post-halving market trends.
As the halving event approaches, all eyes are on Bitcoin miners and investors to see how they navigate the changing landscape of the cryptocurrency market.
